Vol. 521 No. 4
71 Mr. Stagg asked the Minister for Foreign Affairs the arrangements he has made to compensate staff located in the US employed by his Department for any net loss of pay resulting from the coming into force of the new US-Ireland double taxation agreement and the recognition of the US-Ireland Consular Convention Tax Exemption. [17394/00]
The majority of staff employed by my Department at the embassy and consulates in the US are not affected by the 1997 US-Ireland double taxation agreement, as they enjoy income tax exemption in the United States and pay tax in Ireland. However, a small number of staff are affected and the Department has implemented a new arrangement under which those staff now liable for income tax are compensated for their loss of salary through a non-pensionable supplementary tax allowance. The allowance is set locally and is calculated based on the federal, state and local income tax rates in operation. As a result, staff affected by the double taxation agreement are in receipt of salaries similar to those of their counterparts who are not affected by the agreement.
