Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 62:

In page 55, between lines 6 and 7, to insert the following:

“Taxation treatment for self-employed contractors

54.The Minister shall within six months of the passing of this Act, prepare and lay before the Oireachtas a report assessing the taxation treatment of travel and subsistence expenses incurred by self-employed contractors, including but not limited to a comparison between the treatment in Ireland and other EU Member States and an impact assessment on foreign direct investment.”.

I do not propose to dwell on this because we had a good discussion on Committee Stage. To be fair to the Minister, Deputy Donohoe, he has agreed to engage on the issue to see whether it can be progressed. The issue we are raising relates to the taxation of travel and subsistence expenses actually incurred by independent professional contractors, many of whom, as we know, are working in the areas of IT, engineering, pharma and biopharma in regard to delivering major capital projects across the country. We are certainly not talking about bogus self-employment in any respect. These are people who are moving from project to project, which is the nature of the work they do. They are incurring actual expenses which I would argue are wholly and exclusively incurred for the purposes of their business. The Revenue and the Department appear to take a different view.

It is an issue in the sense that we have to remain competitive in the delivery of major capital projects around the country. We have lost many key independent professional contractors with expertise to overseas because they travel from project to project.

This issue needs to be examined. I appreciate the fundamental nature of the requirement that all self-employed expenses must meet the key test of being wholly and exclusively incurred for business purposes. That cannot be compromised. In respect of employees, there is an additional requirement that expenses be incurred in respect of the performance of their duties.

I will engage with the Minister on this matter. If there are proposals, they will be tabled at the finance committee in the normal course. I will withdraw the amendment.

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