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Covid-19 Pandemic Supports

Dáil Éireann Debate, Tuesday - 1 December 2020

Tuesday, 1 December 2020

Questions (208)

Gerald Nash

Question:

208. Deputy Ged Nash asked the Minister for Finance if fee-paying third level students and their families in cases of more than one third level student per family will receive the full €250 reduction or credit note per student as part of the one-off Covid-19 payment scheme; if the net tax reduction will be less in certain cases (details supplied); and if he will make a statement on the matter. [39624/20]

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Written answers

As the Deputy will appreciate, the operation of support measures for third level students is a matter for the Minister for Further and Higher Education, Research, Innovation and Science.

Generally speaking, all payments to individuals are taxable in the hands of the recipient unless specifically exempted. However, the basis on which the payment is made is a determining factor in the potential tax treatment of same.

Section 192F of the Taxes Consolidation Act 1997 provides an exemption for payments made by an awarding authority to, or in respect of, a student in accordance with a scheme or scheme of grants made by the Minister under the Student Support Act 2011. Any payments made in accordance with that section, such as a top-up to SUSI payments, should fall within the exemption under s192F.

I am advised by Revenue that in the case of a payment which is not made in accordance with s. 192F, it would be taxable. Such payments may include a once-off credit provided by relevant institutions to students which is available for use against institutional services, such as registration fees, or in the case of a direct payment to students, where students have been unable to utilise their “once-off credit” with the institution.

In the case of a refund, tax relief is available for tuition fees paid for full time students, subject to a single disregard amount of €3,000 per family. Revenue advise me that, in the circumstances mentioned by the Deputy, if an amount is refunded against the student contribution towards tuition fees, it may result in the net tax deduction being less in certain circumstances.

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