Dominic Hannigan (Meath East, Labour)
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Question 107: To ask the Minister for Finance if there are any tax breaks available for small businesses to send their employees on part time courses to help them support and improve their business; and if he will make a statement on the matter. [33552/12]

Michael Noonan (Limerick City, Fine Gael)
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In general, all companies are entitled to claim a deduction for costs wholly and exclusively incurred for the purposes of the trade. There are a number of statutory prohibitions on deductions and these are set out in Section 81, Taxes Consolidation Act 1997. In addition, a deduction in respect of entertainment expenses is expressly forbidden. Where the cost of a training course is reimbursed to a staff member, the Revenue Commissioners will normally allow a deduction to the employer on the basis that the cost is incurred wholly and exclusively for the purposes of the trade - from the company's point of view such a cost would normally be included as part of its staff costs for the year. Tax relief is also available under Section 473A of the Taxes Consolidation Act 1997, subject to certain conditions and thresholds, at the standard rate of income tax (20%), for qualifying fees paid by an individual in respect of a third level education course including part-time and postgraduate courses. An individual can claim tax relief on fees paid by him/her in respect of an approved third level course pursued by him/her and on fees paid by him/her in respect of an approved course pursued by other individuals.

Section 476 of the Taxes Consolidation Act 1997, also provides tax relief for fees paid by individuals for training courses in the areas of information technology and foreign languages. The training courses, which can be up to two years duration, must be approved by FÁS. The tax relief, which is at the standard rate of tax, is available for fees of up to €1,270, subject to a minimum amount of €315. To qualify for the relief, the individual must receive a certificate of competence on completion of the course.