Written Answers. - Income Tax Liabilities.

Seamus Kirk

Question:

62 Mr. Kirk asked the Minister for Finance the current position of cross-Border workers; the proposals, if any, he has to modify their income tax liabilities; and if he will make a statement on the matter. [3982/97]

The issues involved in the taxation of cross-Border workers were thoroughly investigated by an interdepartmental committee which I established in 1995. This committee found that the treatment of cross-Border workers for the purposes of income tax is fair and reasonable vis-á-vis other Irish taxpayers. Consequently, the committee felt that there is no justification for any special income tax treatment of these workers as compared to any other category of Irish resident taxpayers.

However, the committee did make other recommendations, most notably to exempt cross-Border workers from the health and employment and training levies. I announced such an exemption in last year's budget and this was introduced in last year's Social Welfare Act.

The committee also recommended that cross-Border workers should avail of the direct debit system as a means of paying their Irish tax liability and this now applies for the preliminary tax payment which was due on 1 November 1996 and which will fall to be due on 1 November of subsequent years. Full details of this system, including an explanatory leaflet are available from the Revenue Commissioners.
That is the current position regarding cross-Border workers. Like all other Irish taxpayers, these workers must meet their tax liabilities and there are no proposals to modify such liabilities.