Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Written Answers. - Tax Reliefs.

Noel Ahern

Question:

110 Mr. N. Ahern asked the Minister for Finance the success to date of provisions of the Finance Act, 1999, regarding the supply by employers of tax free monthly and annual commuter tickets; if he will report on the success, use and encouragement of the scheme in the public sector; the number of staff within the Civil Service who have taken up the scheme; if they are benefiting fully from it; the steps which are being taken to encourage and promote the scheme; his views on reports that its implementation is not actively pushed in the public service and is being frustrated by a narrow interpretation of the ruling; and if he will make a statement on the matter. [4371/01]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that as employees are not required to include income arising from the provision of bus and rail passes by their employers in their tax returns there is, therefore, no basis on which to provide an estimate of the numbers involved. The introduction of the travel pass scheme provided for in the 1999 Finance Bill underpins Government policy on greater use of public transport. Following recent discussions on the matter with the staff side at general council its application to the Civil Service is currently being examined.

In September 2000 the Revenue Commissioners in an article in their publication "Tax Briefing" clarified their interpretation of the provision in the Finance Act, 1999. Specifically, the Commissioners said that they are prepared, subject to certain conditions, to regard salary sacrifice arrangements in which the employee agrees to forego remuneration in return for the benefit of a travel pass as being effective for tax purposes. I will arrange to have a copy of the relevant article sent to the Deputy.