Joan Burton (Dublin West, Labour) | Oireachtas source

I am not in a position to accept this amendment. Generally, the annual tax and PRSI liabilities on non-PAYE income are charged on the same income base. Broadly speaking, the tax and PRSI liabilities are charged on profits generated. Where there are losses in a particular year, these losses are allowable as deductible expenditure which results in the reduction or elimination of the tax and the PRSI liabilities.

There is no provision for the offset of previous years' losses to reduce the PRSI liability. The principle that the PRSI liability is calculated with allowing an offset for previous years' losses applies throughout the PRSI system and not just in regard to the rental income of employees. Any change in the application of this core principle would significantly reduce PRSI income to the Social Insurance Fund. As Senators can appreciate, as well as the one property landlord about whom Senator Power spoke yesterday, we also have many professional landlords in the State with multiple properties. The loss of PRSI if this rule were to be adopted, therefore, would be very significant.