Mr. Niall Cody:

We are not abolishing flat-rate expenses. We are reviewing the entitlement to such expenses where it arises under legislation. We have carried out reviews of it, and completed reviews in certain cases. That will stand, unless between now and 2020 some other evidence comes to light that a change is needed in that area. We will continue the review of the rest of them, and we have undertaken not to commence its implementation until we have completed all of them. We will have that done by the end of this year. Any changes will have effect from 1 January.

The issue about particular expenses provided for in the legislation is a matter for the Oireachtas. The dual abode allowance, for example, is specifically provided for under legislation. Our job is to implement the legislation as provided for. The review will continue. We are not starting on the basis that they are being abolished, but we are considering whether categories of employees undergo expenses "wholly, necessarily and exclusively". That is the legislative provision. If the legislation was to change, we would obviously implement the new legislation.

The background to this review is that over the past number of years new categories of employees and their representative groups have approached us and made a case. We examined the case with regard to the legislation and the expenditure, and granted new types of flat-rate expenses. We were asked about differences in some of the more historical types of expense regularly in parliamentary questions. I recall the commentary on lower rates for females compared to males in certain cases, and vice versa. We were asked how this could be the case and told that it does not make any sense. There was an issue regarding what constituted "wholly, necessarily and exclusively". We mentioned the health and safety issue. It would be a poor employer in this day and age who expected his or her employee to pay costs wholly, necessarily and exclusively incurred in carrying out his or her employment. The reality is that if one has to, one is entitled to claim. If there is a category where the flat-rate expenses system works better, we will implement it. Our system is so different from what it was in the 1960s when this process started, so if an individual employee who is not part of a representative group incurs expenses, he or she can log on to myAccountand complete a form 12 electronically in two minutes. We have a system that is so different from what was in place when the flat-rate expenses system started. Until 2008 or 2009, every few years the consumer price index was raised but not fundamentally reviewed. The economic downturn came, and many of the flat-rate expenses stayed as they were for a number of years before new categories came in. The process is just part of what Revenue does across the wide portfolio of risk we deal with. It is part of our obligation in the proper interpretation and administration of the law. We are not withdrawing the system, but the review of flat-rate expenses will continue. We go about our business in as effective a way as possible. Sometimes we find ourselves the subject of a media flurry, in situations where perhaps we have not thought enough about what we do and how we get the message across. That is the reason the finance Bill process started. We considered the idea that six or seven parts of the flat-rates expenses system had been completed but that the others would not be completed in time. That is why we decided to postpone implementation of the changes until all the categories of flat-rate expense had been reviewed. It allows for an element of fairness.