Michael McGrath (Cork South Central, Fianna Fail)
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167. To ask the Minister for Finance the tax expenditure associated with the claiming of flat rate expenses; the number of such claims that were made in 2013 and 2014; and if he will make a statement on the matter. [46052/15]

Michael McGrath (Cork South Central, Fianna Fail)
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168. To ask the Minister for Finance the last occasion on which the Revenue Commissioners reviewed the flat rate expenses system for tax relief, including the rate at which they apply; and if he will make a statement on the matter. [46054/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 167 and 168 together.

I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' Statistics webpage at http://www.revenue.ie/en/about/statistics/index.html.

In relation to the Deputy's Question, the latest information on the cost and numbers benefiting from 'Allowable Expenses' can be found at http://www.revenue.ie/en/about/statistics/costs-tax-expenditures.pdf.

I am advised by Revenue that due to the nature of the data returned, it is not possible to provide a breakdown of Flat Rate Expenses. The 'Allowable Expenses' figures represent both flat rate (employment) expenses and also un-reimbursed expenses incurred wholly, exclusively and necessarily in the performance of the duties of an office/employment.

The latest full year for which information is available is 2013. Updates for 2014 will be published in due course.

I am further advised by Revenue that the flat rate expense regime has been developed over many years with individual flat rate expenses negotiated with representatives of different categories of workers at their request. During such negotiations, an entitlement to a deduction is first established, i.e. the expense must be wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment, and the amount of the allowable expenses incurred is ascertained.

The agreed deduction may then be applied to all employees of the class or group in question, ensuring that each individual in a particular class or group is granted the same amount. It reduces the need for individual employees to submit claims annually to Revenue thereby reducing costs for both taxpayers and Revenue. 

Representative bodies occasionally approach Revenue to seek a review of the flat rate expense applicable to the class or group of employees that they represent.  Any such review is focused solely on the expense items applicable to the relevant sector or group of employees.