Dáil Éireann díospóireacht -
Wednesday, 20 Nov 1996

Vol. 471 No. 7

Written Answers. - FÁS Community Employment Scheme.

Mary Wallace

Ceist:

119 Miss M. Wallace asked the Minister for Finance the reason the children's benefit section of a FÁS payment is treated differently for tax purposes to the children's benefit section of a social welfare payment; whether he intends to review this situation; and if he will make a statement on the matter. [21613/96]

Minister for Finance (Mr. Quinn)

Payments made to participants under a FÁS community employment scheme, including additional payments in respect of dependent children, are made in respect of services rendered and are, therefore, fully taxable in the normal manner. FÁS training allowances paid to trainees under a job training scheme or other FÁS training courses are not liable to taxation.

The child dependant additions paid with most social welfare payments are subject to taxation where the basic payment is liable to taxation. However, as part of the introduction of taxation of unemployment benefit and disability benefit, the child dependant additions payable with both of these benefits have been exempt from tax since 6 April 1995.