Tax Code.

Dáil Éireann Debate, Wednesday - 7 October 2009

Wednesday, 7 October 2009

Ceisteanna (142)

John Deasy

Ceist:

232 Deputy John Deasy asked the Minister for Finance if, as a goodwill gesture to former employees of a company (details supplied) in Waterford, he will exempt them from being liable for tax and employer and employee PRSI contributions in respect of a €10 million payment by the new owners that was negotiated by the Labour Relations Commission; if his attention has been drawn to the fact that this payment will cover only a little more than 40% of their entitlements; if his further attention has been drawn to the fact that these employees have lost all of their pension entitlements; and if he will make a statement on the matter. [34892/09]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

In general all income arising from an employment is chargeable to income tax. The relevant legislation is contained in Section 112 Taxes Consolidation Act, 1997. The scope of that legislation is very wide and includes all salaries, wages, fees, perquisites and any profit whatever arising as a result of holding or having held an employment. In the case of the payment in question, based on the information provided by the Receiver, the payment is fully within the charge to income tax in accordance with Section 112 Taxes Consolidation Act 1997. In relation to the liability of this payment to PRSI, this is a matter in the first instance for the Minister for Social and Family Affairs.