Vol. 473 No. 1
73 Mr. E. Byrne asked the Minister for Finance if his attention has been drawn to the fact that one-third of all purpose-built parking spaces in Dublin are rented to firms for their staff's allday use; whether any benefit-in-kind accrues from this facility; if so, whether the matter is being pursued by the Revenue Commissioners; and if he will make a statement on the matter. [24279/96]
I am informed by the Revenue Commissioners that capital allowances may be claimed by a taxpayer in connection with the construction of multistorey car parks provided that such car parks are wholly for the use of members of the public generally or, in the Temple Bar area, wholly or mainly for such use. Capital allowances are claimed under the self assessment system and are subject to audit. When, during the course of an audit, an inspector discovers that the claim can not be justified because some at least of the car parking is not available to the public generally, he may claw back the capital allowances granted by way of a balancing charge on the taxpayer.
I am further informed by the Revenue Commissioners that a charge to tax in respect of a benefit-in-kind arises under section 117, Income Tax Act, 1967.
As regards car parking spaces, the factors necessary to establish the value of any benefit to an employee include: whether a car parking space is for the sole use of one employee or is also available for the use of clients and customers, whether the cost of a car parking space is included in the overall cost of office space, and whether the space is required as a necessity for the performance of the duties of the employee.
While the provision of car parking spaces is a factor that would be taken into account by the Revenue Commissioners, there can be considerable administrative and technical difficulties in identifying the cost to an employer and value to an employee of the provision of a car parking space for each individual employee.
