asked the Minister for Finance if employees of An Foras Forbartha who take up the redundancy offer made to them will be treated equally with regard to payments received for years of service and in the context of the manner in which redundancy payments made will be taxable or if employees who took a career break will be liable for a greater sum of tax on the redundancy moneys received than those who did not, as the redundancy moneys received by them for the years preceding a career break will be regarded as taxable in their hands, being in effect an ex gratia payment rather than a payment made to them under the Redundancy Payments Acts.
Written Answers. - Redundancy Payments.
75.
I have been advised by the Revenue Commissioners that payments under the Redundancy Payments Acts are exempt from the charge to income tax. Additional payments made under an arrangement between an employer and employee are subject to special exemptions and reliefs for income tax purposes. In general it can be said that the reliefs apply uniformly on the basis of length of service and the tax treatment is not affected by the intervention of a career break.
I am arranging with the Revenue Commissioners to have a leaflet explaining the relevant statutory provisions sent to the Deputy.