Patricia Ryan
Question:72. Deputy Patricia Ryan asked the Minister for Finance if he will reintroduce tax relief on trade union subscriptions; and if he will make a statement on the matter. [13535/20]
View answerTuesday, 30 June 2020
Questions (72)
Written answers
A review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016, and included in the 2016 report on tax expenditures published on Budget day 2016.
http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf
The review concluded that:
"...analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."
This issue was discussed during the Committee Stage of the Finance Bill 2019 in Dáil Éireann. Given that the previous examination of the matter was undertaken in 2016, during the course of the debate I undertook to have my officials carry out an updated review into the specific issue of tax relief, acknowledging stakeholder viewpoints and taking into account international practice in the area. I understand that the relevant work is at an advanced stage at present.