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Dáil Éireann Vol. 989 Wednesday, No. 2 13 November 2019 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Insert Date Here 13/11/2019A00050Ceisteanna - Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 119 13/11/2019A00075Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 119 13/11/2019A00150Tax Code � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 119 13/11/2019B00350Insurance Costs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 121 13/11/2019C01350State Aid Investigations� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 125 13/11/2019D01300EU Budget Contribution � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 128 13/11/2019E00600Ceisteanna Eile - Other Questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 130 13/11/2019E00650Tax Code � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 130 13/11/2019F00600Budget 2020 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 132 13/11/2019G00400Insurance Costs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 133 13/11/2019H00100Tax Policy� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 135 13/11/2019H01200Banking Sector Staff � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 137 13/11/2019J00650Illicit Trade � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 139 13/11/2019K00400Ceisteanna ó Cheannairí - Leaders’ Questions� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 140 13/11/2019N00850Ceisteanna ar Reachtaíocht a Gealladh - Questions on Promised Legislation � � � � � � � � � � � � � � � � � � � � � � 149 13/11/2019R01700Ceisteanna (Atógáil) - Questions (Resumed)� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 161 13/11/2019R01800Taoiseach’s Meetings and Engagements� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 161 13/11/2019S00600Cabinet Committee Meetings � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 164 13/11/2019U01850Cabinet Committee Meetings � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 168 13/11/2019V01200Ábhair Shaincheisteanna Tráthúla - Topical Issue Matters� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 172 13/11/2019CC00150Saincheisteanna Tráthúla - Topical Issue Debate � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 173 13/11/2019CC00225Hare Coursing � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 173 13/11/2019DD00400School Catchment Areas � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 176 13/11/2019FF00500Life Insurance Policies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 179 13/11/2019GG00700Consumer Insurance Contracts Bill 2017: Order for Report Stage � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 182 13/11/2019GG01000Consumer Insurance Contracts Bill 2017: Report and Final Stages� � � � � � � � � � � � � � � � � � � � � � � � � � � � � 182 13/11/2019MM00400Social Welfare (No� 2) Bill 2019: Second Stage (Resumed) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 197 13/11/2019UU00300Social Welfare (No� 2) Bill 2019: Referral to Select Committee � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 213 13/11/2019UU00500Provision of Accommodation and Ancillary Services to Applicants for International Protection: Statements 213 DÁIL ÉIREANN Dé Céadaoin, 13 Samhain 2019 Wednesday, 13 November 2019 Chuaigh an Leas-Cheann Comhairle i gceannas ar 10�30 a�m� Paidir. Prayer. 13/11/2019A00050Ceisteanna - Questions 13/11/2019A00075Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions 13/11/2019A00100An Leas-Cheann Comhairle: We now have questions to the Minister for Finance and I ask all those who contribute to watch the clock� 13/11/2019A00150Tax Code 13/11/2019A0020028� Deputy Michael McGrath asked the Minister for Finance the position on the review of the flat rate expenses system; and if he will make a statement on the matter. [46832/19] 13/11/2019A00300Deputy Michael McGrath: I seek an update on the review being undertaken by the Rev- enue Commissioners on the flat rate expense allowance system, which is relevant for more than 600,000 workers. According to the Revenue website, the outcome of the review will mean that any change will come into effect on 1 January 2020. I seek an update for the House. 13/11/2019A00400Minister for Finance (Deputy Paschal Donohoe): I thank Deputy Michael McGrath� This matter has also been raised with me by Deputy Pearse Doherty� The flat rate expense allowance regime is an administratively-based practice operated by Revenue, where specific commonality of expenditure exists across an employment category and the statutory requirement for a tax deduction for expenses, as set out in section 114 of the Taxes Consolidation Act 1997, is satisfied, namely, that the expense must be wholly, exclu- sively and necessarily incurred in the performance of the duties of the relevant employment� This allowance regime eases the administrative burden on Revenue and on employees in 119 Dáil Éireann certain sectors by facilitating the automatic granting of a fixed tax allowance to cover allowable employment-related expenses, without the need for annual claims by every employee con- cerned. It is important to note, however, that the regime does not preclude any employee from making an individual claim for a tax allowance in respect of employment-related expenses, where those expenses meet the statutory requirement for such an allowance� I am advised that a flat rate expense allowance amount is decided following engagement between Revenue and the relevant representative body for the particular group of employees who incur the same expense� The regime has developed incrementally over the past 40 to 50 years and currently incorporates 53 employment categories, broadly covering some 134 differ- ent allowances� Over the past 18 months, Revenue has been conducting a comprehensive review of the re- gime. I understand the review is ongoing but is nearing conclusion, with an expected comple- tion date by the end of the year� As the Deputy is aware, the administration of the tax code is a matter for Revenue, which is independent in the performance of its functions. That being said, I expect that Revenue, as it has demonstrated on many occasions, will implement the outcome of its review in its customary proportionate and fair manner� Having regard to the fact that we are coming closer to the date on which any changes are due to be implemented, I have written to Revenue this week requesting a factual update on the issue. I will revert to the Deputies who have raised the matter with me, with a view to sharing any information received, as soon as possible. 13/11/2019A00500Deputy Michael McGrath: This is a significant issue for many workers. More than 600,000 workers availed of the flat rate expense allowance system in 2017, with gross claims of more than €160 million, which means a tax saved amount of €48 million. If we take an example such as miners working in Tara Mines, their allowances is €1,312 so their tax saving is more than €500 per annum. As the allowance for many nurses is €733, at the marginal rate it would result in a tax saving of close to €300 per annum� I am concerned we are getting very close to the deadline and we do not know where all of this is going. There could be a nasty shock in January for tens of thousands of workers, if not more, when they see their payslips. I do not know the nature of the ongoing consultation but before any changes are made we should be made aware of them and we should be given an op- portunity to debate the issue in the House. The Oireachtas finance committee should also have an opportunity to discuss with the Revenue Commissioners the nature and scope of this to see whether changes are possible� 13/11/2019A00600Deputy Paschal Donohoe: I am well aware of the numbers of citizens who will be affected by this. I am also aware of the likely effect it will have on their after-tax income. In my letter to the Revenue Commissioners I also asked whether they can give me further clarity on the number of employees covered by this, the various categories of employees, the cost to Revenue and the benefit to each employee group in order that I have a clearer understanding
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