Michael McGrath (Cork South Central, Fianna Fail)
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78. To ask the Minister for Finance if he will consider seeking the extension of the seafarer’s tax allowance to those whose voyages both begin and end in the State, but which involve extended periods outside of the State and its territorial waters; and if he will make a statement on the matter. [33490/15]

Michael Noonan (Limerick City, Fine Gael)
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The seafarers allowance, which is provided for under section 472B of the Taxes Consolidation Act 1997, applies to the shipping industry and is currently an approved state aid under EU rules. The allowance of €6,350 at the marginal rate is conditional on a seafarer being at sea for at least 161 days in a tax year. The duties must be wholly performed aboard sea-going ships on an international voyage.  A sea-going ship is one that is registered in the relevant Register of a Member State and is used solely for the trade of carrying, by sea, passengers or cargo for reward.  An international voyage is a voyage that begins or ends in a port outside the State. EU approval of the allowance was received on the basis of the above conditions under the EU State Aid Guidelines relating to the maritime transport sector.

The Deputy may be aware that in Budget 2015 I announced a review of the tax supports available to the marine sector, including an analysis of the costs and benefits of existing measures, as well as a review of international experience. I expect to receive the final report shortly and will consider the recommendations therein for Budget 2016 if possible.