asked the Minister for Finance if he is aware of any change of policy in regard to the assessment for tax purposes of tips received by catering or waiting staff in hotels and catering institutions; if he is aware of the concern being expressed by the professional body representing these workers; and whether he will confirm that there has been no change of policy in this respect.
Written Answers. - Tax Assessment of Catering Staff.
41.
Catering and waiting staff in hotels, in common with other workers in the tourist industry, are chargeable to tax on the income arising from their employment. The tax charge, which is adjusted from time to time in the light of changing circumstances, applies to commissions, tips and any other perquisites arising from the exercise of the employment as well as wages and salaries.
I have been advised by the Revenue Commissioners that there has been no change of policy in this matter nor have any representations on this subject been received by them from any professional body representing hotel workers. It is possible that the Deputy may have in mind a certain category of hotel worker whose tips were not taxed in recent years because of an oversight. The matter has now been rectified.