Joe Costello (Dublin Central, Labour)
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Question 178: To ask the Minister for Finance if he will amend the Finance (No. 2) Act 2008 to ensure that the daily requirement for residency in the State for tax purposes is 24 hours not a portion of the day; and if he will make a statement on the matter. [15165/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 15 Finance (No. 2) Act 2008 amended section 819 of the Taxes Consolidation Act 1997 to provide that, for 2009 and subsequent years, an individual is regarded as present in the State for a day if he or she is present in the State at any time during that day.

This provision amended the previous tax residence rule, denoted as the "Cinderella rule", under which individuals could be in the State on a given day but not present for that day for tax purposes provided they arrive after midnight and depart before the following midnight.

The purpose of the amendment was to make it more difficult for an individual to arrange his or her affairs to become non-resident for tax purposes. The Deputy's proposal would make it easier for individuals to be non-resident. As a result, I do not intend making the suggested amendment.

Olivia Mitchell (Dublin South, Fine Gael)
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Question 179: To ask the Minister for Finance if he will permit funds to write off rebates due to them on foot of redundancy payments against tax due, in view of the fact that the delays in repaying is driving firms out of business. [15177/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I presume that the Deputy is referring to the 60% statutory redundancy rebates that the Department of Enterprise, Trade and Employment administer.

Taxes paid by employers include tax levied directly on the employer such as Income Tax or Corporation Tax but also fiduciary taxes such as PAYE Income Tax, Income Levy or VAT levied on the employees or customers of that employer. Also relevant would be levies and contributions collected from employees such as PRSI and Health Levy.

In the circumstances and given that there is no provision in taxation, social welfare or health legislation to offset tax liabilities in the manner suggested, it is not possible to offset the 60% statutory redundancy rebates against a tax liability due to Revenue.

I am, however, advised by Revenue that where a business is awaiting a statutory redundancy rebate and it is experiencing particular difficulties in meeting its tax payment obligations because of a delay in receiving the repayment, then subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax.