Mr. Niall Cody:

There was a recent tax appeal decision in which the Appeals Commissioner set out a view on an issue which was not in front of him. He wondered whether allowing expenses on the subsistence element or travel and subsistence was allowable. We reviewed it and it has been the subject of a good number of parliamentary questions. We have set out our position on it and we think our approach is in accordance with case law and does not require a legislative change. If we were to implement the Tax Appeals Commissioner's view on an issue that was not in front of him, we would be restricting the right of employees to claim subsistence when there is a travel and subsistence claim. If an employee was based in Limerick and was going to do a job in Galway, he or she would be entitled to claim travel but not subsistence because it would need to be wholly, exclusively and necessarily incurred but we do not think that is a sensible interpretation of case law. The import of what the Appeals Commissioner is saying is that subsistence would not be allowable in any case unless there is a legislative change but we do not think he is right.