Dáil Éireann díospóireacht -
Wednesday, 29 Jan 1992

Vol. 415 No. 1

Written Answers. - Taxing of Retired Sealink Employees.

Proinsias De Rossa

Ceist:

143 Proinsias De Rossa asked the Minister for Finance if he has received representations from a person (details supplied) on behalf of a group of former Sealink employees who retired in April, 1984 who complain that they have been treated more harshly for tax purposes than colleagues who retired from the same firm at different times; if he has established the reason (1) Sealink UK were instructed by the Revenue Commissioners to deduct such large amounts of income tax from the 12 workers in question in April, 1984; and (2) Sealink British Ferries and Sealink Stena Line were instructed by the Revenue Commissioners to deduct only minimum amounts of income tax from their former colleagues; if in view of the apparent injustice in this case, he will ask the Revenue Commissioners to examine the matter again; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

I have received representations in relation to the matter raised by the Deputy and I am satisfied that there is no injustice involved.

The workers who took early retirement under the 1984 scheme were taxed on an interest free advance in respect of a retirement lump sum which was included as part of the package. Only payments made under a pension scheme approved by the Revenue Commissioners could be regarded as non-taxable. At the time the payments were made the pension scheme had not been approved. An application was subsequently made to the Revenue Commissioners to have the pension scheme approved for tax purposes. Approval was given in December 1985 and the tax was refunded. There was no undue delay on the Revenue Commissioners part in approving the scheme or in establishing the status of the advance.

The allegation of discriminatory treatment by comparison with other workers has been fully investigated by both the Revenue Commissioners and the Ombudsman and found not to be well founded.