Dáil Éireann Debate, Thursday - 4 April 2019
59. Deputy Joan Burton asked the Minister for Finance the occupations (details supplied) covered in section 118(3)(a) Taxes Consolidation Act 1997; and the provision of accommodation that is exempt to tax. [15722/19]
View answer60. Deputy Joan Burton asked the Minister for Finance the estimated number of employees covered by the exemption to benefit-in-kind provided by section 118(3)(a) Taxes Consolidation Act 1997 in each of the years 2014 to 2018 by employer activity, in tabular form. [15723/19]
View answer61. Deputy Joan Burton asked the Minister for Finance the estimated cost of the exemption to benefit-in-kind provided by section 118(3)(a) Taxes Consolidation Act 1997 in each of the years 2014 to 2018, by employer activity, in tabular form. [15724/19]
View answer62. Deputy Joan Burton asked the Minister for Finance the estimated tax forgone in respect of the largest beneficiary of the exemption granted under section 118(3)(a) Taxes Consolidation Act 1997, in each of the years 2012 to 2018, in tabular form. [15725/19]
View answer63. Deputy Joan Burton asked the Minister for Finance the number of persons assessed for benefit-in-kind in respect to their employers providing housing for them over the past ten years to date; the rental costs of such properties on a monthly basis over that period; the highest and lowest rental cost properties, respectively; and the average of the rental cost, in tabular form. [15738/19]
View answerI propose to take Questions Nos. 59 to 63, inclusive, together.
I am advised by Revenue that Section 118 of the Taxes Consolidation Act 1997, as amended, is the general charging provision for the taxation of benefits in kind.
The section provides for a charge to income tax in respect of the provision of certain benefits in kind by a body corporate for a director or employee, which are not otherwise chargeable to income tax. These benefits in kind can include living or other accommodation, entertainment, domestic or other services, or other benefits or facilities of whatever nature. The charge is limited to the amount of the expense incurred by the body corporate in providing the benefit.
Section 118 (3)(a) provides for a specific exemption from the charge to tax in respect of living accommodation provided by a body corporate to an employee, if the employee is required by the terms of the employment to live there so that s/he can perform his or her duties properly. However, for the exemption to apply, the accommodation must be provided in accordance with a practice which, before 30 July 1948, commonly prevailed in trades of the class in question in relation to employees of the class in question. Moreover, the exemption does not apply where the employee is a director of the employing body in question, or of another body corporate which controls, or which is controlled by, the employing body. There is no set list of trades or professions which are eligible for this exemption, rather, it is a requirement of the exemption that the employer can prove eligibility if requested by Revenue.
In relation to Questions 15723/19, 15724/19, 15725/19 and 15738/19, I am advised by Revenue that where an employee is in receipt of a benefit from an employer which is not a taxable benefit, the employer is not required to report the details. Consequently, Revenue has no data on which to provide the information requested.
