I am advised by Revenue that Section 121 of the Taxes Consolidation Act (TCA) 1997 provides that where a car is made available for the private use of an employee then the employee is chargeable to benefit in kind tax (BIK).
If an individual has, by reason of his or her employment, a car available for his or her private use, a taxable BIK arises, even if the person providing the car is not the individual’s employer.
In such cases, it is broadly the third party who provided the benefit that is responsible for accounting for the PAYE, PRSI and USC on same, rather than the employer. However, the facts, circumstances, arrangements, etc., relating to the benefit must be examined before the correct tax treatment can be determined in each case.
With regard, to the specific scenario reference, I am advised by Revenue that where a 'brand ambassador' has a new car supplied for their personal use, the tax treatment regarding the provision of a car for personal use, depends on the particular facts and circumstances. If the brand ambassador is an employee of the provider of the car, the BIK rules outlined above will apply.
Where an individual is provided with the use of a car, otherwise in their capacity as an employee, and in circumstances where the individual agrees to provide a service, such as involving the promotion and marketing of the particular car brand, the individual will, depending on the particular facts and circumstances, be subject to tax under either Schedule D Case I/II or Case IV. If the service is provided in the carrying on of a trade/profession, a charge to tax under Case I/II will apply. A charge to tax under Case IV will apply in circumstances where the service is carried on otherwise than in the course of a trade. The taxable amount in each case would generally be based on a fair value of the use of the car.
In relation to any individual taxpayers who may have acted as brand ambassadors, it is for that individual to declare all relevant matters on his or her annual tax return. As the Deputy is aware, Revenue is independent in relation to operational matters and I have no role in directing Revenue in relation to operational matters. Section 851A precludes Revenue from providing information on individual taxpayers or on a category of an identifiable group of taxpayers. However, Revenue has advised me that it pays close attention to matters that are in the public domain and I have every confidence in Revenue in that regard.
