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Dáil Éireann díospóireacht -
Wednesday, 30 Jan 2002

Vol. 547 No. 1

Written Answers. - Tax Reliefs.

Ceist:

388 Dr. Upton asked the Minister for Finance the number of persons who have availed of the trade union tax allowance; and if he will make a statement on the matter. [1115/02]

I am informed by the Revenue Commissioners that, arising from the prior need to identify the qualifying trade union members in the most efficient way possible, the tax relief for trade union subscriptions due in respect of the short tax year ended 31 December 2001 will, with the agreement of the Irish Congress of Trade Unions, be carried forward for inclusion with the relief appropriate to the 2002 income tax year.

A consultative process was initiated in 2001, involving the ICTU, employers and the Revenue Commissioners, with a view to identifying the trade union members in question rather than requiring qualifying members to make individual claims to tax offices. The result so far has been the supply of over 250,000 qualifying PPS numbers by employers to revenue. This information will enable revenue to give the tax relief automatically for those cases in the certificates of tax credit to be issued next month for the 2002 tax year.

Those remaining qualifying trade union members, who have not been identified as part of the consultative process with employers and the ICTU, will need to claim the relief in the normal way. The entitlement to the relief will be highlighted in the explanatory leaflet to be issued with all certificates of tax credit, and claims will be accepted in writing or by telephone call. Furthermore, Revenue will continue to work with the ICTU to ensure that as many trade union members as possible avail of this relief.

Ceist:

389 Dr. Upton asked the Minister for Finance the number of persons who have availed of the tax allowance for the payment of environmental waste charges in the Dublin Corporation area. [1116/02]

I am informed by the Revenue Commissioners that the most recent relevant information available relates to the income tax year 1998-99 for which some 27,500 claims for tax relief were allowed in respect of local authority services charges in the whole country.

An estimated breakdown of the figures on a geographical basis is available on the basis of "bailiwick", meaning, in this case, the jurisdiction or boundaries within which revenue sheriffs, county registrars or their officers operate for the purposes of enforcement of tax debt. It equates geographically with "county" while also providing separate breakdowns for "city" and "county" in the case of counties Dublin and Cork. In 1998-99, the number of claimants for tax relief on service charges for the Dublin city bailiwick, equivalent to the Dublin Corporation area, was about 5,750.

In considering the data, however, it should be borne in mind that the allocation by county of PAYE employees, who represent the bulk of the claimants, could be somewhat misleading because each employee is associated in Revenue's computer system with the county in which his or her employer is registered for PAYE purposes, regardless of the address of the actual workplace or of the individual's home address. Thus, the data relating to a company with its headquarters in Dublin could include employees working in any other part of the country. Self-employed persons are associated on the tax record with the address at which the business is located, which may be different to the home address.

Ceist:

390 Dr. Upton asked the Minister for Finance the number of applications which have been made for relief for the provision of student accommodation since this measure was introduced. [1117/02]

In the Finance Act, 1999, I provided for a scheme of tax relief for rented residential accommodation for third level students. The purpose of this initiative is to provide additional rented accommodation for students and to relieve current supply pressures in the private rented sector. I am informed by the Department of the Environment and Local Government that 48 applications have been received to date, which amounts to approximately 7,792 bed spaces on completion. The majority of the bed spaces relate to Dublin and Galway where the demand for rental accommodation is greatest.

Ceist:

391 Dr. Upton asked the Minister for Finance the number of applications which have been made for capital allowances for park and ride facilities since the measure was introduced. [1118/02]

Under the relevant legislation, applications have to be made in the first instance to the local authority in whose area the application for the park and ride facility is proposed. My Department has no up to date information on this matter, due to the fact that information from tax returns is not recorded in such a way that it would be possible to provide an estimate of the number of persons who have availed of capital allowances for the construction of park and ride facilities. However, we are asking the Department of the Environment and Local Government to contact all the relevant local authorities in this connection.

Ceist:

392 Dr. Upton asked the Minister for Finance the number of MED 2 applications for tax relief which were made for 2000 and 2001; and if he has satisfied himself that people are availing themselves of this relief. [1119/02]

I am informed by the Revenue Commissioners that the most recent relevant information available on medical expenses relates to the income tax year 1998-99, in respect of which some 92,700 claims for tax relief were allowed. Claims relating specifically to dental expenses are made on the MED 2 form, but statistics on tax relief allowed on foot of these claims are not separately identifiable in the overall total for all medical expenses. However, a survey carried out in June 2000 of a 1% sample of medical expenses claims made in the income tax year 1997-98, the most recent available at the time, indicated that about 21% of claims included dental expenses. I have no reason to believe that those entitled to avail of the relief are not doing so.

Ceist:

393 Dr. Upton asked the Minister for Finance the position regarding the taxing of car parking spaces provided for employees for purposes of commuting to their place of work. [1120/02]

The current position is that car parking spaces provided by employers for their employees are not subject to taxation. The Deputy will recall that in the 2000 Budget Statement, I directed the Depart ment of Finance to consult with the Dublin Transportation Office and other relevant agencies on the practical measures required to impose a straightforward tax on persons using any employer provided car parking spaces in the inner city area of Dublin. The working group discussed a number of options in detail. However, there was no consensus within the group as to what measure could be adopted which would be practical, straightforward and equitable.

Ceist:

394 Dr. Upton asked the Minister for Finance if he has satisfied himself with the number of people seeking to avail of the benefit-in-kind exemption for the travel pass scheme; and if he will make a statement on the matter. [1121/02]

I am advised by the Revenue Commissioners that as employees are not required to include income arising from the provision of bus and rail passes by their employers in their tax returns there is no basis on which an estimate of the numbers involved can be provided. In the case of employers, the expense of providing bus and rail passes for employees is allowable as a deduction in arriving at profits for tax purposes. However, the employer's tax return of income does not contain an entry in respect of this item and the employer's profit and loss account does not normally distinguish between this particular expense and other employment related expenses. In these circumstances there is no basis on which a reliable estimate of numbers involved can be provided.

As the Deputy will be aware, the Revenue Commissioners clarified in September 2000 the circumstances in which they would accept salary sacrifice arrangements as qualifying for exemption from benefit-in-kind taxation. The advantages of such an arrangement have been advertised widely by CIE in recent times. In the case of the Civil Service, the travel pass scheme was negotiated with the trade unions and introduced in early November 2001. Under the rules agreed, persons participating in the scheme are required to commit themselves to an annual salary sacrifice in return for the provision of an annual travel pass by their Department or Office. Reaction to the scheme has been positive and I understand from CIE that, to date, almost 3,500 annual travel passes have issued in respect of civil servants with a sales value to CIE of 2.4 million in 2002. In my own Department, almost 25% of staff have applied under the scheme and reports from other Departments indicate they have had a similar response.

As regards the operation of the arrangements in the private sector and elsewhere, I understand from CIE that following Revenue's clarification of the acceptability of salary sacrifice arrangements, the number of relevant ticket sales rose from almost 2,000 in 2000, with a total value of about 200,000, £157,000, to in excess of 12,500 in the year 2001 with a sales value in excess of 1,400,000.

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