asked the Minister for Finance if he is aware that CIE employees who were awarded compensation for a change in their working system resulting in shorter hours have been taxed on the compensation; if he considers this unfair; and if he will have the matter rectified.
Ceisteanna—Questions. Oral Answers. - CIE Employees Compensation.
64.
Income tax is chargeable under Schedule E in respect of "all salaries, fees, wages, perquisites or profits whatsoever" from an office or employment. Payments made to employees of CIE as compensation for loss of earnings due to a change in their working system clearly come within this charge and are subject to tax. There is, however, provision in section 3 of the Finance Act, 1968, under which the tax liability may be adjusted to what it would be if the amount had been paid over a period of three years.
I do not consider that any change in the present system is called for.