The Reserve Defence Force Cadre daily allowance was introduced many years ago to compensate members of the Permanent Defence Force who were attached to the Reserve Defence Force for expenses incurred in training reservists and ancillary administrative duties. Historically, due to the nature of the allowance, it was not regarded as being subject to tax or income levy. During the course of a routine Revenue audit, when the Deputy was Minister for Defence, the taxation status of the allowance was raised as a possible issue. Following technical assessment, the Revenue Commissioners determined that the allowance, as then paid, constituted a ‘round sum’ and was liable to taxation. The Revenue Commissioners determined the liability on the Department as employer for the years in question based on this ‘round sum’ determination and payment was made in settlement. The allowance was re-configured as a taxable allowance from 1st March 2011 and since that date any personal tax liability is met by the individual members of the PDF who are in receipt of the allowance.
The number and rank of personnel in receipt of the allowance during the years in question and the duration for which the allowance was held varied according to postings into and out of Reserve Units. The numbers and ranks for the years in question are shown in the table.
Number and rank of PDF Cadre attached to the RDF (includes Naval Service equivalents) in receipt of RDF allowance
Year
|
Numbers
|
|
|
|
Rank
|
|
|
|
|
|
|
|
Lt Colonel
|
Comdt
|
Captain
|
Lieut
|
Coy Sgt
|
CQMS
|
Sgt
|
Cpl
|
Private
|
2007
|
365
|
4
|
22
|
17
|
0
|
5
|
82
|
79
|
58
|
98
|
2008
|
366
|
7
|
22
|
9
|
0
|
6
|
81
|
91
|
56
|
94
|
2009
|
335
|
6
|
13
|
18
|
1
|
4
|
78
|
86
|
50
|
79
|
2010
|
325
|
4
|
18
|
23
|
1
|
1
|
70
|
84
|
49
|
75
|
2011 to end Feb
|
321
|
3
|
18
|
23
|
1
|
2
|
68
|
84
|
49
|
73
|
Some of the personnel would also have been in receipt of other taxable and un-taxable allowances during the period in question, depending on the nature of their duties and other factors. The Department has tax compliance procedures in place and as part of those procedures it is reviewing all non-taxable allowances in order to ensure that payments made to employees are fully tax compliant.