Dáil Éireann Debate, Tuesday - 14 May 2013
320. Deputy Pádraig Mac Lochlainn asked the Minister for Social Protection if she will confirm that 350 Tús supervisors are affected by the removal of an additional job assist tax credit which in the past has been offset against Tús wages, and that this would cost its supervisors up to €1000 a year. [22432/13]
View answerSections 472A and 88A of the Taxes Consolidation Act 1997 provide tax incentives for both employers and employees, to help the long-term unemployed to return to employment. The relief under Section 472A, known as the Revenue Job Assist scheme, allows qualifying employees, in addition to their normal tax credits, to claim certain income deductions, including additional deductions for qualifying children, for the three year period after taking up employment. Section 88A provides an associated tax incentive for employers. Employers may claim a double deduction in computing the profits of the trade or profession in respect of the first three years wages paid to qualifying employees. This double deduction may also be claimed in respect of the employers PRSI contribution on such wages. In order to qualify for the scheme, an individual must be unemployed for at least 12 continuous months prior to the date of commencement of the employment. They must also be in receipt of certain payments from the Department of Social Protection or signing for PRSI credits. Time spent on certain FÁS courses and employment schemes, as well as time spent in prison can count towards the ‘unemployed for 12 months' condition. Employment under an employment scheme or similar which is directly supported by way of a grant from public funds is precluded from being supported by Revenue Job Assist on the basis that it is already grant-aided from public sources.
