Dáil Éireann díospóireacht -
Thursday, 24 Oct 1991

Vol. 411 No. 6

Written Answers. - Tax Exemptions.

Ruairí Quinn

Ceist:

85 Mr. Quinn asked the Minister for Finance if his attention has been drawn to the fact that the Revenue Commissioners do not regard employees of the health and social services boards in Northern Ireland who are taxed at source in Northern Ireland to be exempt under article 18 (2) of the double taxation agreement between the Republic of Ireland and the UK in contrast to employees of the education and library boards of Northern Ireland which are constituted in a manner similar, if not identical, to the health boards mentioned above; if he has received representations on this matter; if he has communicated with the Revenue Commissioners regarding this matter; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

I confirm that I have received representations in this matter and I have taken up the issue with the Revenue Commissioners. They have informed me that all employees referred to — in both the health-social services and education-library services — are not regarded by the UK authorities as rendering services to the Government of the United Kingdom or Northern Ireland or to a local authority in the United Kingdom as required by Article 18 (2) of the Irish-UK double taxation treaty. Accordingly the exemption from Irish tax under the provisions of that Article does not apply.

Until recently, the Irish Revenue Commissioners granted exemption to employees of the education and library boards. Following confirmation from the UK authorities that the position is as outlined above, the exemption given in respect of these employees has been withdrawn. Consequently there is now no difference in the tax treatment of employees of the various employments referred to by the Deputy.

I would remind the Deputy that while employees in these circumstances who are resident in this State would be liable to tax in both jurisdictions, credit is allowed here, under the Ireland/UK double taxation treaty, for tax paid in Northern Ireland.