Written answers

Tuesday, 16 June 2015

Department of Foreign Affairs and Trade

Departmental Staff Allowances

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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689. To ask the Minister for Foreign Affairs and Trade if he will provide, in tabular form, the total amount spent in each of the years 2011 to 2014 and in 2015 to date on staff subsistence payments and staff taxi payments; if his Department has been audited for tax compliance on these payments and other benefits in kind; if these processes have been revised, in view of the Revenue Commissioners concerns over practices in other State bodies; and if he will make a statement on the matter. [23682/15]

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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My Department comprises two separate votes, Vote 28 Department of Foreign Affairs and Trade and Vote 27 International Co-operation. The total amount spent in each of the years 2011 to 2014 and to 31 May 2015 on staff subsistence payments and staff taxi payments is as per the table following.

YearSubsistence Taxi fares ReimbursedTotal
2011754,865151,755906,620
2012793,643166,775960,418
2013829,662182,0271,011,689
2014858,950202,7531,061,703
(to 31 May)2015312,08281,235393,317
TOTAL3,549,202784,5454,333,747
Given the nature of my Department’s responsibilities, officers are obliged to undertake a significant amount of official travel. Travel and meetings often take place out of hours and away from the officer’s headquarters leading to subsistence and/or taxi requirements. The central aim of the departmental travel policy is to minimise official travel costs and to achieve value for money for expenditure necessarily incurred, consistent with the effective discharge of official duties.

The Department complies with Department of Public Expenditure and Reform Circulars in relation to subsistence payments, including reimbursement of taxi costs. The Department is subject to audit by both the Office of the Comptroller and Auditor General and the Department’s Internal Audit function.

In September 2014 the Revenue Commissioners commenced an audit of my Department. Prior to this audit, my Department reviewed findings of similar audits of other Government Departments previously undertaken by the Revenue Commissioners. On that basis, my Department undertook a review of certain expenditure for the period to be audited. Based on this review, my Department made a voluntary declaration to the Revenue Commissioners in relation to certain taxi costs where it was considered that there was an additional tax liability.

The Revenue audit covered the period 1 January 2012 to 31 July 2014. On the completion of the Revenue audit in November 2014, my Department made a payment of €33,570.12 in respect of taxes, interest and penalties.

This settlement comprises €22,340.97 in respect of underpaid PAYE; €5,614.36 underpaid Employer PRSI; €2,820.23 interest on late payment and €2,794.56 penalties. Because of the voluntary declaration, the Revenue Commissioners applied a penalty rate of 10%.

The settlement covers the following areas:

1. Taxis €26,660.90 - this relates to taxi journeys between officers’ home and headquarters. In accordance with Departmental policy, officers who come in before 07:00 and leave after 21:00 may use a taxi. Under tax legislation, travel between home and headquarters gives rise to a Benefit in Kind tax liability.

2. Interview Boards €2,679.65 - while the Department deducted withholding tax from payments to individual board members, the Revenue Commissioners have advised that these payments should be processed through payroll. This would result in the Department paying Employers PRSI.

3. Payments to two retired staff taken back to undertake project work €4,229.57 - while the Department deducted withholding tax from payments to these individuals, the Revenue Commissioners have advised that these payments should be processed through payroll. This would result in the Department paying Employers PRSI.

As a result of the Revenue Commissioners audit, my Department has introduced new procedures for processing payments to external members on interview boards and retired civil servants returning to work on contract; and to applying tax on official taxis costs taken by officers between headquarters and home in accordance with Revenue regulations.

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