Joe Costello (Dublin Central, Labour)
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Question 98: To ask the Minister for Finance if he will confirm that there is no benefit in kind rule for taxation purposes on the use of company helicopters or planes, as there is with company cars; his plans to close off this loophole; and if he will make a statement on the matter. [7859/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that benefits in kind are chargeable to tax under either a specific benefit in kind tax charging provision, for example, as is in place for the use of cars and preferential loans, or under the general benefit in kind tax charging provision.

The private use by directors or employees of helicopters or planes supplied by their employer is within the general benefit in kind tax charging provision and the rule in relation to such benefit is that the annual taxable benefit in kind arising is calculated by reference to a sum equal to 5% of the market value of the helicopter or plane at the date it was first provided plus the annual running costs, as apportioned between business use and private use. However, where an employer charters and pays for a plane or helicopter for the private use of the director or employee, the full cost of such charter is treated as part of normal salary and taxable in full in the hands of the director or employee.

Likewise, where a director or employee charters a plane or helicopter the cost of which is paid by his-her employer, such cost is treated as part of normal salary and taxable in full in the hands of the director or employee.

As there is no loophole whereby the private use of helicopters and planes by directors or employees goes untaxed, there is no need to introduce a new tax provision.