Dáil Éireann díospóireacht -
Wednesday, 8 Jul 1992

Vol. 422 No. 4

Written Answers. - Company Cars Taxation.

Michael Noonan

Ceist:

68 Mr. Noonan (Limerick East) asked the Minister for Finance if his attention has been drawn to the fact that (a) the tax free allowances of persons who have the use of company cars were amended after his budgetary announcement on changes in the taxation of such cars as a benefit in kind, but were not re-amended as a result of the changes in the Finance Act, 1992, and (b) deductions are being made in accordance with his budget announcement rather than with the law; and if he will outline the steps, if any, he intends to take to rectify the matter.

Minister for Finance (Mr. B. Ahern):

Changes in the Finance Act, 1992 from those outlined in my budgetary announcement relating to the benefit-in-kind charge for a company car provided to an employee only affect individuals whose annual business mileage exceeds 18,000 miles and it is only in these circumstances that changes in the tax free allowance are necessary. The Revenue Commissioners have advised me that tax districts have already been informally advised how to deal with individuals in these situations and formal instructions along these lines are being issued at present. I have also been advised that some tax free allowances have already been amended and this process is continuing. However, any taxpayer who is concerned can contact his/her district directly with details and his/her tax free allowance will be amended accordingly.