Tax Code

Dáil Éireann Debate, Tuesday - 27 November 2012

Tuesday, 27 November 2012

Questions (239)

Dominic Hannigan

Question:

239. Deputy Dominic Hannigan asked the Minister for Finance further to Parliamentary Question No. 204 of 20 November 2012, if the employee of a contractor, whose company is based in another jurisdiction but is working on a State contract, stand liable for USC or income tax to the Revenue Commissioner; if so, does the Revenue check to make sure that the charge and taxes are paid; are there any checks with the social protection Departments of other jurisdictions to ensure that the employees are not receiving any payments from them; and if he will make a statement on the matter. [52874/12]

Written answers

Minister for Finance

The position is that, in line with the position prevailing in many other jurisdictions -

(a) an individual who is tax resident in the State for a tax year is liable to Irish income tax and the USC on his or her worldwide income for that tax year, and

(b) an individual who is not resident here for tax purposes is liable to Irish income tax and the USC on his or her Irish source income and gains and on income attributable to duties of an employment exercised here.

I am informed by the Revenue Commissioners that the obligation to deduct income tax and the USC from employment income rests with the employer regardless of the fact that the employer may be based in another jurisdiction. Compliance with the PAYE and USC obligations is an ongoing feature of the Revenue Commissioners’ normal compliance programmes. The entitlement of individuals to payments under the relevant social protection system of another jurisdiction is not a matter for the Revenue Commissioners. Finally, if the Deputy is aware of situations wherein income tax and the USC correctly due to the Exchequer is not being deducted and remitted, he should inform the Revenue Commissioners of the necessary details.