Alice-Mary Higgins (Independent) | Oireachtas source

I move recommendation No. 4:

In page 20, after line 33, to insert the following: “Report on re-introduction of trade union tax relief

18. The Minister shall, within 7 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the re-introduction of the trade union tax relief.”.

This recommendation refers to the restoration of tax relief on trade union subscriptions. The rationale at the time of its abolition was that it was a measure related to austerity and difficult choices that needed to be made. The initial proposal was that tax relief on both trade union subscriptions and subscriptions to professional bodies would be abolished. In fact, when the 2011 Finance Bill was published, the tax relief on trade union subscriptions was abolished but the tax relief on subscriptions to professional bodies was not.

An inequitable situation continues whereby tax relief is still granted to the self-employed and on professional fees paid by employers for employees' memberships of professional bodies and subscriptions to, for example, bodies such as IBEC and the Irish Small and Medium Enterprises Association, ISME, yet tax relief is not granted on trade union subscriptions. It is an anomaly that was introduced into the tax system in 2011. We were told it was part of a necessary austerity measure at the time.The concern is that we have heard a lot of comment in many debates in this House about partnership and balance between all parties but it is inequitable if tax relief is only applied to professional body membership. I do not oppose that but it needs to be matched by addressing the issue of tax relief for trade union membership. If we wish to have a society that engages in negotiation by partnership, ensuring that we can have collective discussions at the highest level and industrial relations machinery that works, trade union membership has a significant public benefit. I would like the Minister to consider producing a report on the best ways to further restore balance in that regard and restore the trade union membership tax relief.