Brian Cowen (Laois-Offaly, Fianna Fail)

I pointed out on Committee Stage that I would return to this amendment. I recall that acceptance of it would require that all medical examinations undertaken by employees and directors, other than proprietary directors or connected persons, and paid for by that company would not be subject to the provisions for benefit-in-kind introduced in the 2004 Finance Bill.

The current position is that the cost of providing medical check-ups that employees are required to undergo by their employer is not regarded as a taxable benefit and is not liable to PAYE or PRSI. Routine medical check-ups paid for but not required by the employer are treated as giving rise to a taxable benefit. On reflection, I have no plans to change that position.

I have considered the Deputy's suggestion but I do not intend to widen the scope of the current provision. The current provision is reasonably generous, in that, employees are still able to claim back medical expenses against their income tax. In addition, if an employer chooses to pay for such examinations under the small benefits exemption threshold of €250, which I announced in my last budget, his or her employees would not be liable to a benefit-in-kind charge on this benefit. On that basis I am not in favour of accepting the amendment.

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