Joan Burton (Dublin West, Labour)
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Question 251: To ask the Minister for Finance the situation in respect of PAYE and PRSI contributions for workers brought here from a non-European country for the purpose of employment in the construction industry, as widely reported in respect of a recent case (details supplied); if such workers are liable for PAYE and if he will make a statement on the matter. [11701/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy will be aware, taxpayer confidentiality requires that a Minister for Finance does not answer a parliamentary question about the tax affairs of an individual or company other than when the Deputy is asking the question on behalf of the individual or company. In this instance this is not clear. In the circumstances, I regret I cannot comment on the tax affairs of any taxpayer.

However, I am informed by the Revenue Commissioners that the question of whether the deduction of tax under the PAYE system applies to emoluments paid to workers brought to Ireland from a non-European country for the purpose of employment in the construction industry or any other industry depends on the facts and circumstances prevailing in any specific case. The emoluments payable to an individual working here under an Irish contract of employment are subject to deductions of tax at source under the PAYE system. Where the foreign employing company has a subsidiary company in Ireland, emoluments paid by that Irish subsidiary to individuals working here are also subject to deduction of tax under the PAYE system. On the other hand, an employee working here under a foreign contract of employment and who is paid outside of Ireland by that foreign employer does not pay tax here under the PAYE system but rather is personally responsible for payment of Irish tax under the self-assessment system on his or her salary.

Individuals resident here who are not Irish domiciled can avail of a long-standing statutory tax relief, more commonly known as the remittance basis, against their foreign source income including employment income. This does not apply to the UK. In brief, individuals resident here who may avail of the remittance basis relief pay tax here on the full amount of their Irish and UK source income and on that amount of their non-Irish and non-UK source income, including employment income, brought into the State. Issues relating to PRSI are a matter for the Minister for Social and Family Affairs.