Oireachtas Joint and Select Committees

Thursday, 28 November 2019

Public Accounts Committee

2018 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 9 - Office of the Revenue Commissioners
Chapter 17 - Tax compliance interventions
Chapter 18 - Tax relief on film production

9:00 am

Mr. Niall Cody:

How a flat rate expense arises in the first place is that a representative body or trade union makes representations and provides detail of the expenses incurred to support the claim. We then review it. The Deputy is right that over a period of time various reviews led to increases in particular sectors. This time last year, we spoke about the mining allowance. The initial stage of the review, as we would expect in tax administration, was based on the higher amounts. This is the normal approach we take to a review of any sector. The representative body provides the documentation to support the claim and we review it, having regard to the legislation and subject to discussions and meetings with the various bodies. Changes would probably have been effected with regard to mining if we had proceeded last year because it was in one of the earlier reviews but no change will commence until it applies to everybody.

An issue that the Department and the Minister may wish to consider is that there are particular sectors in which the nature of the employment may be such that it is a policy determination whether a specific sector should be entitled to a particular credit, having regard to the nature of the activity it is engaged in. I am sure the Minister will reflect on this as a policy matter.