Vol. 399 No. 5
57 Mr. R. Bruton asked the Minister for Finance the basis on which the allowance given to building workers in respect of travel is regarded as part of their taxable income, whereas travelling expenses incurred by public servants and many other workers are treated as non-taxable.
The general position is that payments made by employers to employees in respect of travelling expenses, or any other expenses, incurred in performing the duties of their employment are chargeable to tax. The employee may claim a deduction for tax purposes for expenses actually incurred. In practice, an employer may by arrangement with the inspector of taxes be allowed to pay certain amounts in respect of such expenses without deduction of tax. For example, under an agreement made between the Revenue Commissioners and the Construction Industry Federation, payments to workers sent to work away from home base are payable free of tax if they conform to the agreement. This is in line with the practice adopted in the case of expenses payments to public servants and other employees.
I am informed that there are certain payments made to construction workers specifically in respect of travel between home and their place of work. I am advised by the Revenue Commissioners that such payments are taxable. They are also taxable in the hands of other workers, including the small minority of public servants in receipt of them.
