asked the Minister for Finance the reason allowances paid to participants on Teamwork and social employment schemes are treated as taxable income, while allowances paid under FÁS training courses are not; and if he will make a statement on the matter.
Written Answers. - Employment Schemes Participants' Taxation.
43.
I have been advised by the Revenue Commissioners that allowances for training courses which are paid by Foras Áiseanna Saothair (FÁS) to unemployed individuals are not chargeable to tax since the allowances in question represent no more than the recipients' entitlement to social welfare unemployment assistance.
Allowances, which are considerably in excess of those paid to individuals on training courses, are paid by FÁS under the Teamwork and social employment schemes to sponsoring bodies, usually local authorities or local voluntary community groups, towards the employment costs of each participant in these schemes. It is a condition of the schemes that each sponsoring body registers as an employer and operates PAYE in the normal way.