Dáil Éireann Debate, Wednesday - 13 January 2021
225. Deputy James O'Connor asked the Minister for Finance if he will address the income tax implications of the €250 payment to non-SUSI students (details supplied); and if he will make a statement on the matter. [44977/20]
View answerAs 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 s. 192F.
I am advised by Revenue that, in the case of a payment which is not within the scope of 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. The tax deduction is a proportion of the eligible amount paid. Where the eligible amount paid is less, the tax deduction will less.
I currently have no plans to seek to change this position.
