Dáil Éireann Debate, Tuesday - 17 April 2018
260. Deputy Paul Kehoe asked the Minister for Finance his plans to increase the amount of country money tax relief available to persons or to alter the conditions of the relief; and if he will make a statement on the matter. [16110/18]
Amharc ar fhreagraI am informed by Revenue that they operate a scheme known as ‘country money’ in relation to employees in the construction sector. This arrangement is designed to reduce the administrative overhead for both employers and employees in the reimbursement of expenses.
Section 114 of the Taxes Consolidation Act 1997 provides that where an employee “is necessarily obliged to incur…expenses of travelling in the performance of the duties of that employment…there may be deducted from the emoluments to be assessed the expenses so necessarily incurred and defrayed”.
This provision allows for reimbursement by an employer, without deduction of tax, of expenses of travel, including subsistence, necessarily incurred by an employee in the course of their duties.
While this may be operated on the basis of vouched expenses, for ease of administration, Revenue allow the payment of certain set sums of money tax-free to employees in the construction industry while they are assigned to sites that are remote from their place of employment.
The employee must be employed and working at a site that is 32km or more from the employer’s base. The current rates for ‘country money’ are a maximum of €181.68 per week for more than four days or €36.34 per day for four days or less.
‘Country money’ may not be paid tax-free where the employee is provided with transport to and from the site by the employer, provided with board and lodgings by the employer or is recruited to work at one site only (also known as ‘jobbed on site’ employees). The payment of ‘country money’ does not prevent an employee from making a claim for a deduction from taxable income of the actual amount of expenses necessarily incurred by them. However, in these circumstances, any amount of ‘country money’ paid or any other reimbursement of expenses by the employer is treated as additional emoluments and taxed accordingly.
The rates of ‘country money’ are agreed between Revenue and relevant construction industry and employee representative bodies. I am advised that there are no plans to review these at present.
