Written answers

Tuesday, 6 October 2009

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 358: To ask the Minister for Finance if a taxi provided by an employer (details supplied) to bring employees to work when no public transport is available constitutes a benefit in kind; if it is subject to income tax, PRSI and income levies; and if he will make a statement on the matter. [34330/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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In general the provision of any benefit is subject to income tax in accordance with the provisions of section 118 of the Taxes Consolidation Act 1997.

Benefits provided by an employer including payment of taxi fares for non-business journeys (e.g. travel to and from work) constitutes a taxable benefit and the cost of the taxi paid by the employer is subject to PAYE/PRSI.

However, PAYE/PRSI need not be applied to the benefit arising from the provision of taxi transport, on an irregular basis, to an employee where the employee is required to work early (before public transport commences) or late (after 10.00pm) by the employer, and the provision of the taxi transport is provided to ensure the safety of the employee. In all other circumstances, PAYE /PRSI must be applied to such outlays unless the travel is in the nature of business travel.

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