Seán Power
Ceist:68 Mr. Power asked the Minister for Finance the specific statutory basis for the application by the Revenue Commissioners of the Civil Service rate of mileage expenses to company directors and all other taxpayers. [4389/95]
Written Answers. - Mileage Expenses.
I have been advised by the Revenue Commissioners that there is no specific statutory basis for the use of the Civil Service mileage rates as a measure of actual motor expenses incurred.
It is, however, the practice in determining a mileage rate scale, which no more than reimburses the employee for the actual expenditure incurred, that the inspector of taxes approves scale rates which do not exceed what are kown as the "Civil Service Mileage Rates". Many employers and employees are quite happy with this arrangement as, for example, in many cases it reduces administration costs.
However, where an employee or employer does not accept or comply with the inspector's terms of this practice, he/she may, of course, revert to the strict statutory position, viz: the employer treats the expenses payments as pay and applies tax to them in the normal way, and the employee makes a written application (together with receipts etc.) to his/her inspector of taxes for a deduction in respect of the expenses incurred.