Dáil Éireann díospóireacht -
Wednesday, 23 Apr 1958

Vol. 167 No. 5

Financial Resolutions. - Resolution No. 2—Income-tax and Surtax.

Dr. Ryan

I move:—

That where—

(a) a body corporate, unincorporated society or other body makes any payment in respect of expenses to, or provides any money or any benefits or facilities in kind for, any director, any person taking part in the management of its affairs or any employee, or

(b) an individual or partnership carrying on a trade, profession or vocation makes any payment in respect of expenses to, or provides any money or any benefits or facilities in kind for, any employee,

the payment, money, benefits or facilities shall, in such manner and to such extent as may be provided by the Act giving effect to this Resolution, be taken into account for income tax (including sur-tax) purposes as perquisites of the office or employment of the director, person taking part as aforesaid or employee.

Mr. Sweetman

Perhaps the Minister would give us some explanation about this Resolution?

Dr. Ryan

As the law stands, an employer provides benefits either for a director or an employee of the company which are not readily converted into cash and is not bound to make a return of them—for instance, the use of a car, the use of an employee in his garden, or matters of that kind. There is a good deal of that going on—and it is on the increase— where directors of a company, or fairly highly paid employees, are getting benefits but they are not returned in their personal remuneration. The idea is that they must all be returned and then expenses will be allowed where justified.

Mr. Sweetman

As far as I can understand this Resolution, contributions by a company towards the expenses of a canteen would be assessable.

Dr. Ryan

No, they would be excluded. A small thing like that will not be taken into account.

Mr. Sweetman

The Resolution would cover it.

Resolution put and agreed to.