Paul Kehoe (Wexford, Fine Gael)
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Question 256: To ask the Minister for Finance the tax relief available to commuters who travel by train to work. [14842/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Section 118(5A) of the Taxes Consolidation Act 1997 provides for an exemption from benefit-in-kind tax where an employer provides a monthly/ annual rail or bus pass to employees or directors. From 1 January 2004 this also includes passes for travel on the Luas. The exemption was further extended with effect from the 1 January 2005 to include passes for travel on commuter ferry services which operate within the State in respect of journeys which begin and end in the State.

The bus, rail or ferry pass is one that is issued by either:

CIE or any of its subsidiaries (e.g. Bus Eireann, Iarnrod Eireann, Bus Atha Cliath); or

a private bus operator holding a passenger licence under Section 7 of the Road Transport Act 1932; or

a person who provides a passenger transport service under an arrangement entered into by CIE in accordance with Section 13(1) of the Transport Act 1950; or

a person who has entered into an arrangement with the Railway Procurement Agency, in accordance with section 43(6) of the Transport (Railway Infrastructure) Act 2001 to operate a railway; or

a person who provides a ferry service within the State, operating a vessel which holds a current valid (1) passenger ship safety certificate, (2) passenger boat licence, or (3) high-speed craft safety certificate, issued by the Minister for Communications, Marine and Natural Resources. It is to be noted that this exemption applies only where passes are purchased by the employer and given to the employees.

Additionally, in the specific context of the provision of bus/rail and ferry passes, the exemption referred to above may also apply where employees agree to sacrifice salary with the employer purchasing the train, bus or rail pass with such salary sacrificed by the employee. In this latter context, the conditions to apply for the tax exemption to apply are as follows

there must be a bona fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary);

the alteration must not be retrospective and must be evidenced in writing;

there must be no entitlement to exchange the benefit for cash;

the choice exercised (i.e. a benefit instead of cash) cannot be made more frequently than once a year and then only with the consent of the employer.

Where the conditions are met:

the employee will not be chargeable to tax on the remuneration sacrificed; and

the corresponding amount paid by the employer to provide a monthly or annual bus/rail or ferry pass will not be regarded as a taxable perquisite.

Paul Kehoe (Wexford, Fine Gael)
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Question 257: To ask the Minister for Finance if an application for tax refund on refuse charges has been received from a person (details supplied) in County Carlow; and when he expects a decision on same. [14857/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that an application for tax refund on refuse charges has been received and was processed on 16 April. Notices of assessment have issued for 2004, 2005 and 2006. A tax refund of €316.59 arises for the year 2005 and a cheque for this amount issued on 19 April. There is no refund due for 2004 and 2006 as no tax was paid in those years. An amended certificate of tax credits dated 16 April issued to the person's employer for the current year and his employer, through the operation of the PAYE system, will make any refund due for this year.