Mattie McGrath (Tipperary South, Independent)
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423. To ask the Minister for Education and Skills If she will address the concerns raised in correspondence (details supplied) regarding special needs assistants; her views that such a situation is neither acceptable or fair; and if she will make a statement on the matter. [19400/15]

Jan O'Sullivan (Limerick City, Labour)
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The taxation of payments made as compensation for a reduction in hours by an employee is governed by the tax regulations and this Department has no discretion in the matter.

The Revenue Commissioners have advised this Department that if compensation for a reduction in hours is paid and the employee is continuing in employment, the payment is treated as additional emoluments and taxed accordingly. Tax relief may be claimed in respect of any payment chargeable to tax under Schedule E made to the holder of an office or employment to compensate for a reduction or a possible reduction of future remuneration.

The relief from tax given is in all cases granted by way of repayment after the end of the tax year during which the payment was made. The employer making any such compensation payment is required to deduct income tax from the full amount of the payment under the normal PAYE procedure. The individual in receipt of the payment is then entitled, on making a claim and proving the relevant facts to the satisfaction of the inspector, to have his /her total income tax liability for the tax year reassessed.