Dáil Éireann debate -
Wednesday, 6 Oct 1993

Vol. 434 No. 2

Written Answers. - Tax Treatment of Redundancy Sums.

Noel Ahern

Question:

135 Mr. N. Ahern asked the Minister for Finance if he will allow the new tax treatment of redundancy sums to apply to people made redundant from the beginning of the new tax year 1993 as applies to all other tax matters; and if he will give the number of redundancies that have been drawn to his attention for the period 6 April to 6 May 1993.

Minister for Finance (Mr. B. Ahern)

I would not be prepared to provide for retrospection in relation to the tax treatment of redundancy payments which has effect as and from 6 May 1993. The new provisions apply to payments made on or after 6 May as this was the date on which I first announced changes in this area. To provide for retrospection would set an unwelcome precedent for the introduction or alteration of reliefs in the future which would have major implications for the Exchequer.

While the question of redundancy statistics is one for my colleague the Minister for Enterprise and Employment, I have been advised by his Department that statistics under the Redundancy Payments Acts relate to proposed redundancies notified by employers to the Department of Enterprise and Employment. In the period referred to by the Deputy a total of 1,430 redundancies were notified to the Department. It is important to recognise that these figures relate to proposed redundancies and not to actual redundancies.