James Reilly (Dublin North, Fine Gael) | Oireachtas source

I remind Senators that the amendment concerns HSE employees, not other persons. Insisting that HSE employees are tax resident in the State would more than likely fall foul of EU and discriminatory legislation rules.

I will set out the likely tax treatment in regard to income arising from individuals engaged by the HSE who are not resident in the State. Notwithstanding any of the provisions of the Tax Acts, the income would be chargeable to tax by virtue of section 19 of the Taxes Consolidation Act 1997, as an annuity, pension or stipend payable out of the public revenue of the State. This charge is unfettered by considerations of residency of the individual or where the duties are performed. Where the individual is tax resident in a country with which the State has a tax treaty, income will generally remain taxable in the state where duties are performed. I can only assume that, in the vast majority of cases, HSE employees perform their duties in this State. Where the individual is tax resident in a country with which Ireland does not have a tax treaty, the income is taxable in this State. Some individuals employed by the HSE may have non-HSE income and the taxation of such income is provided for in the Taxes Consolidation Act. I will not accept the amendment.