Tony Gregory
Ceist:246 Mr. Gregory asked the Minister for Finance the correct method of assessment of the crèche subsidy for benefit in kind tax purposes (details supplied). [5944/04]
Amharc ar fhreagraTuesday, 24 February 2004
Ceisteanna (153)
Freagraí scríofa
I am advised by the Revenue Commissioners that where an employer provides a benefit to an employee the amount of the taxable benefit which will be liable to PAYE and PRSI is the expense incurred by the employer less any amount made good to the employer by the employee.
In this case the employer has made a block booking of a number of places in a crèche. The employees pay part of the cost. The difference between the cost to the employer and the amount paid by the employees is a taxable benefit which must be apportioned between the employees concerned based on the facts including the number of children involved for each employee. The apportionment should lead to a result which is fair and reasonable.
Revenue have advised me that they will be in contact with the employer to ensure that there is an appropriate tax treatment in this case.