Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I move amendment No. 11:

In page 8, line 14, to delete “192K.(1) An electricity” and substitute “192JA.(1) An electricity”.

This is a technical amendment. The electricity costs benefit to be paid out is supposed to be exempt from income tax. We do not want anybody to be paying income tax on the money they receive. The payment will not, therefore, give rise to potential income tax, USC or PRSI liabilities for its beneficiaries. Section 7 was included with the agreement of the Minister for Finance to provide for an exemption from payment in the Income Tax Act 1967. In the absence of an appropriate exempting legislative provision, the payment could give rise to income tax liabilities for the beneficiaries. This is because, notwithstanding that the payment does not go directly into the hands of taxpayers, it is deemed to be income and so is subject to tax. Taxation of the payment would not be consistent with the spirit of the measure. Following publication of the Bill, an error was found in the numbering of the Taxes Consolidation Act 1997. A section was due to be inserted under section 192J of this Act but this has been changed to section 192JA. The amendment has been proposed on that basis.

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