Ciarán Cannon (Galway East, Fine Gael)

I move amendment No. 13:

In page 6, before section 8, but in Part 2, to insert the following new section:

8.—Section 2(1) of the Principal Act is amended—

(a) by substituting the following definition for the definition of "reckonable

earnings" (amended by section 13 of the Act of 2011):

" 'reckonable earnings' means, subject to section 13(2)(da)—

(a) in the case of an employed contributor, not being a special

contributor, emoluments derived from insurable employment

or insurable (occupational injuries) employment (other than

such emoluments that may be prescribed) to which Chapter 4

of Part 42 of the Act of 1997 applies, but without regard to

Chapter 1 of Part 44 of that Act, and

(b) in the case of a special contributor—

(i) salaries, wages or other remuneration including nonpecuniary

remuneration derived from insurable

employment or insurable (occupational injuries)

employment to which the Act of 1997 (other than Chapter

4 of Part 42) applies or would apply if the employed

contributor in receipt of the remuneration were resident in

the State, but without regard to Chapter 1 of Part 44 of that

Act, and

(ii) payments to persons attending or engaged in courses or

schemes provided or approved by—

(I) An Foras Áiseanna Saothair,

(II) Teagasc, or

(III) the National Tourism Development Authority,

and reckonable earnings shall include—

(A) share-based remuneration realised, acquired or

appropriated, as the case may be, on or after 1 January

2011, and

(B) the 'specified amount' within the meaning of section

825C of the Act of 1997;",

and

(b) by substituting the following definition for the definition of "reckonable

emoluments" (amended by section 13 of the Act of 2011):

" 'reckonable emoluments', in relation to a self-employed contributor,

means emoluments (other than reckonable earnings and any other

emoluments that may be prescribed) to which Chapter 4 of Part 42 of the

Act of 1997 applies and reckonable emoluments shall include—

(a) share-based remuneration realised, acquired or appropriated, as

the case may be, on or after 1 January 2011, and

(b) the 'specified amount' within the meaning of section 825C of

the Act of 1997;".".

These amendments are required following the implementation of the provision relating to specialist assignee relief programme in the recently enacted Finance Act 2012. The special assignee relief programme will reduce the cost to employers of assigning skilled individuals from abroad to take up positions in Irish-based operations of their employers by exempting income tax on 30% of salary between €75,000 and €500,000, for employees who assign for between one and five years. The income on which this relief is granted will, however, be fully chargeable to both the employee and employer PRSI. The purpose of the amendment is to ensure the collection of PRSI on these sums and thereby protect PRSI income payable to the social insurance fund.

See this speech in context