Donal Carey
Ceist:224 Mr. Carey asked the Minister for Finance if he has met representatives of former employees of a company (details supplied) regarding anomalies that arose in their tax deduction; and the up-to-date position in this matter.
Written Answers. - Redundancy Sums Tax Treatment.
I have met a deputation representing former employees from the company concerned and I have considered their concerns in relation to the tax treatment of their redundancy lump-sums.
I appreciate that the employees in question may feel disappointed due to the fact that these redundancy payments were not taxed under the new more generous arrangements contained in the Finance Act, 1993. The commencement date of 6 May 1993 for the new changes was chosen as this was the first date upon which I indicated publicly that the tax treatment of redundancy sums was to be altered. I could not provide for retrospection as it would entail major expenses for the Exchequer and would set an unwelcome precedent for the introduction or alteration of reliefs in the future.