Dáil Éireann Debate, Wednesday - 25 September 2013
94. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding a taxsaver ticket; and if he will make a statement on the matter. [40120/13]
View answerThe Travel Pass Scheme, in Section 118 of the Taxes Consolidation Act, 1997, allows an employer to incur the expense of providing an employee with a bus/rail pass, without the employee being liable for benefit-in-kind taxation. The Revenue Commissioners have agreed that the benefit-in-kind tax exemption will apply in the context of salary sacrifice, that is, where an employee agrees to forgo or sacrifice part of his/her salary in lieu of the provision of the travel pass by the employer. The employee will not pay tax or PRSI on the remuneration sacrificed.
The travel pass scheme was introduced in the civil service from 1 January 2002.
Under the civil service terms and conditions an officer must be employed on a permanent/probationary basis at the date of application. An officer employed under a fixed term contract is also eligible to apply.
It is a condition of the civil service scheme operates on the basis of an annual option for the civil service. Accordingly, the officer is not able to cancel his or her participation in the scheme prior to the expiry of the one year period.
