Tax Code

Dáil Éireann Debate, Tuesday - 17 October 2017

Tuesday, 17 October 2017

Ceisteanna (132, 133)

Pat Deering

Ceist:

132. Deputy Pat Deering asked the Minister for Finance if he can confirm if all air crew (details supplied) pay their tax under Schedule E; and if he will make a statement on the matter. [43668/17]

Pat Deering

Ceist:

133. Deputy Pat Deering asked the Minister for Finance if Schedule E has been operated by all airlines in respect of all crew regardless of whether they are employed under a contract of service or a contract for service since 1 January 2010. [43669/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 132 and 133 together.

I am informed by Revenue that Section 127B of the Taxes Consolidation Act 1997 came into effect on 1 January 2011. This section provides for the taxation under Schedule E of employment income arising to any member of a flight crew in circumstances where the duties are exercised on aircraft operated in international traffic and where the place of effective management of the aircraft operator is in the State. The provision applies irrespective of the place of residence of the crew member.

Part 42 Chapter 4 of the Taxes Consolidation Act 1997 imposes an obligation on employers to make deductions at source under the PAYE system from the payment of emoluments to an employee (i.e. an individual operating under a contract of service) where those emoluments are taxable under Schedule E.

Thus, where the provisions of Section 127B apply, flight crew will pay tax on their employment income under Schedule E and will be subject to deductions at source under the PAYE system. In the case of a non Irish resident individual, whether this charge is relieved from Irish tax will depend on whether a Double Taxation Agreement is in place between the State and the jurisdiction in which the employee resides.

Section 127B only applies where the individual is an employee and does not apply in the case of an individual operating under a contract for service (i.e. self employed). Where an individual is operating under a contract for service the individual is required to account for the correct tax due under self-assessment rules. Any such individual is required to file an annual income tax return.

Pursuant to Section 851A of the Act, which provides for taxpayer confidentiality, Revenue cannot disclose information relating to a particular taxpayer or a narrowly defined group of taxpayers.