Dáil Éireann díospóireacht -
Tuesday, 29 Mar 1994

Vol. 440 No. 7

Written Answers. - Builders' Expenses.

Tony Gregory

Ceist:

105 Mr. Gregory asked the Minister for Finance if the system in the building trade known as country money whereby employees are paid £90 per week tax free for overnight stays is being widely abused; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

I am informed by the Revenue Commissioners that country money is paid to employees in the building trade when they are working away from base due to the requirement of their job. The allowance is designed to compensate for the travel and subsistence costs associated with working away from home and is covered by an agreement between the Construction Industry Federation and the Builders Trade Union.

Such payments are taxable in the hands of the employee but the employee is entitled to a deduction for actual expenditure incurred. Frequently agreements are made in advance with the Inspector of Taxes for the payment of such amounts without deduction of tax where the amounts involved no more than reimburse the employee for the actual expenditure incurred. Such an agreement exists between the Inspector of Taxes and the building trade. The allowance is paid tax-free only where the employee is working more than 20 miles from Dublin or in the case of country employees where the distance between site and the employer's base exceeds 30 to 35 miles depending on local agreements. Persons hired on site or hired for that site alone are not entitled to tax-free payments regardless of where the persons concerned live.

The Revenue Commissioners do not consider that the system is unduly abused. While statistics are not kept of the reasons for additional charges arising from Revenue audits, action has been taken in a small number of cases where the allowance was paid to persons hired on site or where the allowance was paid when the mileage from base was below the set limits.