Vol. 421 No. 1
35 Mr. Howlin asked the Minister for Finance if he will extend the availability of the PRSI tax free allowance to employees of Sealink UK, who are obliged to pay United Kingdom insurance contributions, although subject to Irish tax law; if he has satisfied himself that present arrangements afford equity of treatment to all workers who are subject to PAYE taxation; and if he will make a statement on the matter.
The PRSI allowance was intended to reduce the burden imposed by Irish social welfare law on employees who paid contributions to the Social Insurance Fund at the high rates. The Sealink employees are subject to a different social insurance regime; because they work on ships flying the UK flag, under EC law, they are required to pay social insurance contributions to the UK authorities. There is no basis, therefore, for extending the PRSI allowance to the Sealink employees.
Sealink employees who are resident in Ireland are subject to Irish tax and, apart from the PRSI allowance, these employees are granted the same range of allowances as other employees. I am satisfied that the present treatment is equitable in that the availability of allowances to particular groups of workers is based on the possession by those workers of the relevant qualifying characteristics.
