Dáil Éireann debate -
Wednesday, 26 Jun 1996

Vol. 467 No. 5

Written Answers. - Benefit-In-Kind.

Ivor Callely

Question:

51 Mr. Callely asked the Minister for Finance the current position regarding benefit-in-kind in respect of mobile phones or employees in possession of mobile phones; the benefit-in-kind, if any, being considered; and if he will make a statement on the matter. [13753/96]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that a charge to tax will depend on the particular circumstances. A charge will not arise on a mobile phone provided by an employer to an employee for business purposes only. In other circumstances a charge will arise on the element of the costs met by the employer which relate to private use. These costs will usually relate to the cost of private phone calls where these are not reimbursed by the employee.

Where the employer, a sole trader, has a mobile phone the usual rules as regards the allowability of business expenses for tax purposes apply i.e. only those expenses wholly and exclusively incurred in connection with the business are allowable. Costs associated with the private use of a mobile phone are not, therefore, allowable.