Dáil Éireann Debate, Tuesday - 24 April 2007
238 Mr. Kenny asked the Minister for Finance if his attention has been drawn to the fact that a group of people (details supplied) have been excluded from the Irish Seafarers Tax Allowance Scheme and that this group meet the three qualifying conditions for this tax allowance, however, are excluded under the Finance Act 1998, Section 14 Paragraph (3) (a) (ii); his plans to amend this legislation; and if he will make a statement on the matter. [14230/07]
Amharc ar fhreagraSection 472B of the Taxes Consolidation Act 1997 is the legislative basis for the seafarers' allowance. Where the section applies, a deduction of €6,350 is available to a qualifying individual, who is resident in the State, against income arising to him or her from a qualifying employment. Subsection (3)(a) specifically excludes circumstances where an employment is:
an employment the emoluments of which are paid out of the revenue of the state, or
an employment with any board, authority or other similar body established in the State by or under statute.
Accordingly, the allowance is not available to State employees such as, for example, Navy personnel, or employees of statutory bodies established in the State. In all other circumstances a qualifying individual must show that he or she was absent from the State for at least 161 days in a year of assessment for the purposes of performing the duties of a qualifying employment in order for the allowance to apply for that year.
A "qualifying employment" is one which is performed on a "sea going ship"on a voyage which begins or ends in a port outside the State or at a rig, platform or installation in a maritime area. The term "sea-going ship" excludes ships other than ships, registered in a member state of the European Communities, which are used solely for the trade of carrying by sea passengers or cargo for reward. Fishing vessels are also excluded.
EU approval of the allowance was received on the basis of the above conditions under the EU State Aid Guidelines relating to the maritime transport sector.
In summary, the allowance was aimed at, and is available to, employees of commercial, EU registered, passenger ferries and freight carrying vessels, including employees of vessels servicing drilling rigs in any maritime area.
On the basis of the information available to the Revenue Commissioners, the group of people in question are excluded from entitlement to the seafarers' allowance as:they are employees of a statutory body, and the activities of their employer do not constitute the trade of carrying, by sea, passengers or cargo for reward. I have no plans at this time to amend the legislation in question.
