Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

This relates to the special assignee relief programme, SARP. The Minister proposes to extend this programme, which was due to run out at the end of the year, for a further two years. It provides a relief of 30% of income for tax consideration for individuals who are assigned within their companies from abroad to take positions in Irish-based operations of their employer or in an associated company. The individual must have an income of at least €75,000, with an income tax relief applied on the salary above €75,000, with an upper threshold of €1 million for the tax year of 2019. In effect, this means somebody earning €1 million would be €123,000 better off as a result of the continuation of this scheme. That would apply to a person who will work here in 2020 and falls into this category.

The number of people applying for this has increased and the cost of the scheme has also increased. The year after it started the cost was €1.9 million but, in 2017, the cost was €28.1 million.

The number of employees availing of this is now 1,084. The serious questions must be asked. We had a discussion earlier about support for families with low joint incomes which have, in some cases, people with mental and physical incapacity. They may not have much support available. On the other hand, in 2018, eight individuals earning more than €3 million benefitted from this scheme, and that benefit amounted to €123,000. A total of 23 other individuals earning between €1 million and €3 million benefitted from the scheme.

This speaks clearly to the priorities of the Government. It talks about a tax giveaway and the Minister has just voted against his own programme for Government commitment that would cost an additional €20 million. In 2017, this scheme cost €28.1 million and that is likely to have increased in 2018 and 2019 and again in 2020. This is a major tax break for some of the wealthiest people in society and it should not be justified. I ask the Minister to drop this ill-advised scheme. It is completely unfair when people are out there trying to get by week by week. They are feeling the pressure of everything around them, whether it is the cost of insurance, rent or other living expenses. This scheme is for individuals coming from abroad who have special roles within companies and they can write off nearly a third of their income above €75,000 up to €1 million for tax purposes. It is not acceptable.

The scheme goes further and there are other issues with respect to private tuition fees, etc. I am completely opposed to it at a time many other supports are required. The Minister announced an additional €2 million for people with autism in the budget. I have experience of talking to people who are trying to navigate a system that is simply not working and that does not respond to their needs or the needs of their children or families. The Government has provided €2 million to support all those children with autism and their families or to try to increase services. Meanwhile it is providing €40 million or perhaps more for the people in this scheme, some of whom are millionaires or multimillionaires. They will get up to €123,000 in tax benefit next year as a result of this section in the budget. It is not acceptable.