Finian McGrath (Dublin North Central, Independent)
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Question 170: To ask the Minister for Finance the position regarding allowances in respect of a person (details supplied). [11378/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the person concerned and his wife are entitled to the same income tax treatment as an Irish married couple. The person is entitled to the married person's tax credit, which is €3,300 for 2012. In addition, on the basis that he is the sole income earner, he is entitled to a standard income tax rate tax band of €41,800 for 2012, that is, income tax will apply at 20% on income earned up to that amount, with any income in excess of that amount being charged at 41%. Revenue Information Leaflet IT 2 sets out a Guide to the taxation of Married Couples and Civil Partners and is available on the Revenue website at:http://www.revenue.ie/en/tax/it/leaflets/it2.html.

The person in question may also telephone the PAYE lo-call service for the Dublin Region, 1890 33 34 25, or he may call to Revenue's public offices located at:

Central Revenue Information Office,

Cathedral St.,

Dublin 1.

Tallaght Revenue Information Office,

St. John's House,

High St.,

Tallaght,

Dublin 24.

Maureen O'Sullivan (Dublin Central, Independent)
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Question 171: To ask the Minister for Finance if his attention has been drawn to the fact that the tour operators margin scheme - a 23% VAT charge on profit margins charged to tour operators - is essentially a double taxation on travel agents who also pay VAT in the country of supply as well as the standard 12.5% corporation tax on overall profits; if he is aware that after nearly two years in place the scheme is putting the travel sector in financial difficulty and threatening its viability; if he will consider a review of this tax in the near future; and if he will make a statement on the matter. [11417/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that provisions covering the Travel Agents Margin Scheme are contained in Section 88 of the VAT Consolidation Act 2010. This scheme, which is provided for in Articles 306 to 310 of the EU VAT Directive, with which Irish VAT law must comply, was introduced with effect from 1 January 2010. Detailed discussions with the travel industry were carried out prior to the introduction of the scheme. The scheme deals with the activities carried on by travel agents who act in the capacity of a principal when supplying certain travel services such as transport, accommodation, etc, which they have bought in from third parties for onward supply to travellers. Travel agents covered by the scheme are liable to VAT on their margin on the services provided rather than the full consideration they receive in respect of the supply of these services.

The nature of the scheme means that the travel agent only has an obligation to account for VAT on the margin in the country where he/she is established. The travel agent has no further VAT obligations in places where the travel services are supplied. The travel agent cannot recover any VAT charged when he/she purchases the travel services but this is because VAT is only accounted for on the margin when the services are supplied on to the traveller. There is no double taxation. The Scheme is a standard EU-wide Scheme and is in operation in most Member States of the EU.