The Revenue Commissioners require further information to determine the precise tax treatment of the reimbursement of expenses of travel and subsistence in the specific case giving rise to the Deputy's question. If the Deputy will provide the name and address of the relevant board member and the names of the relevant vocational education committee and institute of technology to my office, such details will be passed on to the Revenue Commissioners who will examine the matter.
On a general note, the Revenue Commissioners inform me that members of the board of governors of an institute of technology are office holders and that the remuneration payable to them in their capacity as office holders is chargeable to tax under what is known as Schedule E and subject to deductions, that is, tax, PRSI and the health contribution as appropriate, at source under the PAYE system.
The payment of expenses to office holders in respect of travel and subsistence is chargeable to tax as an emolument of an office or employment. That said, office holders and employees may claim tax relief on the expenses of travel necessarily incurred in the performance of the duties of their office or employment. This is the reason employers may, within limitations, reimburse without deduction of tax to office holders and employees the expense of travel necessarily incurred in the performance of their duties. For practical purposes, the limitations commonly accepted across all sectors are the Civil Service rates, limits and procedures.
However, I am further informed by the Revenue Commissioners that it is a long established and widely understood principle of tax case law that the expense of travelling to and from an individual's normal place of work is not an expense of travelling necessarily incurred in the performance of the duties of that office or employment. Accordingly, the reimbursement to an office holder or employee of such expenses is taxable and subject to deductions at source, that is tax, PRSI and health levies as appropriate, under the PAYE system.
Having regard to the nature of work of State and other such boards and committees, it is likely that, in most cases, the normal place of work of the members of such boards and committees, in their capacity as members, is the place where the relevant meetings are held and accordingly, if expenses are paid to travel to such meetings, they are taxable.