Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 1312: To ask the Minister for Defence when a refund of disability benefit will be awarded to a person (details supplied) for the tax year 2005 in view of the fact that the Department of Defence have resolved matters relating to this refund; and if he will make a statement on the matter. [24529/05]

Willie O'Dea (Limerick East, Fianna Fail)
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The question relates to an application for a refund of income tax from an employee of my Department in respect of absences on sick leave during 2005. This employee received disability benefit for these absences and was also fully covered under the Department's sick pay schemes. Under the Income Tax Acts the first 36 days of disability benefit paid in the tax year is exempt from tax. Employees of my Department are fully covered by sick pay schemes. However, certain employees are also eligible for disability benefit while absent due to sickness. In such cases, these employees retain their full entitlement to paid sick leave but submit applications to the Department of Social and Family Affairs for disability benefit. As the employees are already in receipt of the normal level of pay, the disability benefit payments are forwarded to my Department.

In this case, the person concerned has been in receipt of disability benefit payments for more than 36 days in the current tax year. The question of a tax rebate in respect of these payments therefore arises. However, the Department's payroll system is currently unable to process applications for tax rebates in respect of periods for which an employee has received disability benefit. This is also the situation in a number of other Government Departments. Discussions are ongoing between the relevant Departments and Government offices with a view to putting a system in place whereby tax relief on disability benefit can be dealt with through payroll systems. For this reason, the individual concerned can obtain a refund of income tax in respect of disability benefit received by him at the end of the current income tax year by means of an application to the Revenue Commissioners. This employee has availed of this facility in respect of refunds in previous years. The Department will, of course, provide the employee concerned with any information he might require to pursue this application.