Vol. 509 No. 6
305 Mr. McGrath asked the Minister for Finance if his attention has been drawn to the sense of grievance of many workers who have a vehicle supplied by their employers for their work and have to pay benefit-in-kind as a result; the plans, if any, he has to reduce this tax imposition on such workers; and the reason Government Ministers and others with State cars do not have to pay benefit-in-kind. [21694/99]
The law governing benefit-in-kind in respect of company cars is set out in section 121 of the Taxes Consolidation Act, 1997. Where an employee is given a car by his or her employer the availability of the car for private use is regarded as a benefit-in-kind and is subject to taxation as such. The value of the benefit is assessed and charged to income tax at the taxpayer's marginal rate as if the amount of the assessment were paid by the employer in cash. Reliefs are available where the employee pays certain expenses relating to the car. In addition, where business mileage exceeds 15,000 miles per annum, the value of the benefit is reduced by the tapering relief for business mileage.
