Oireachtas Joint and Select Committees
Thursday, 10 November 2016
Select Committee on Finance, Public Expenditure and Reform, and Taoiseach
Finance Bill 2016: Committee Stage (Resumed)
10:00 am
Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source
My amendment No. 63 on section 14 was ruled out of order. The Minister has a speaking note on it. This amendment relates to the treatment of expenses for non-executive Irish resident directors. There was a change made in the last couple of years to the tax treatment, and there is an exemption, for non-resident non-executive directors of companies. I wish to be clear that we are talking about vouched expenses and whether those expenses would be taxable. I do not understand the logic of a non-executive director's vouched expenses for travel to board meetings being taxed. I do not understand the logic and why the Department of Finance drew a distinction between non-resident and resident non-executive directors. The Minister for Finance knows that many Irish small and medium sized businesses need - and do avail of - the expertise of non-executive directors who can bring a breadth of experience and expertise to their boards. This practice should be encouraged and I do not see why the non-executive directors do not get an income tax exemption for vouched expenses that are directly associated with attending board meetings. This situation should be addressed.
No comments