Brendan Griffin (Kerry, Fine Gael)
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92. To ask the Minister for Finance further to Parliamentary Question No. 219 of 17 May 2016, if he will consider a matter (details supplied) regarding site-based employees; and if he will make a statement on the matter. [12206/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a site-based employee may be described as one who does not have a fixed base and who, in the course of his/her employment, performs substantive duties on behalf of his/her employer at different locations e.g. employees in the construction industry.

The legislative position is such that a site-based employee is not entitled to a tax deduction in respect of the cost of travel to and from the site, nor in respect of the cost of subsistence or overnights relating to attendance at that site. As the site is the normal place of work, such expenses are not necessarily incurred in the performance of the duties of their employment. If, for example, the employee is required to use their car for business purposes e.g. travel to another site or travel to a supplier, then a deduction may be granted in respect of the cost of such expenses i.e. the business element of wear and tear of the car and running expenses.

Notwithstanding the above, where the employer pays 'country money' to a site-based employee, the Revenue practice is that such country money can be paid free of tax subject to the conditions set out in Statement of Practice SP IT/2/07- www.revenue.ie/en/practitioner/law/statements-of-practice/sp_it_2_07.pdf- see in particular paragraphs 4.6.2 and 4.6.3. The principal conditions are that the site must be 32km or more from the employer's base, and that tax free expenses do not apply where (i) the employee does not incur the expense of travelling to and from the site (i.e. the employee is provided with transport to and from the site by the employer), or (ii) the employee is provided with board and lodgings by the employer, or (iii) the employee is recruited to work at one site only.

The payment or reimbursement of expenses by employers to site-based employees (and the applicable rates) would have been originally determined as part of the wider terms of the relevant Employment Agreement between employee representative groups in a particular sector and employer representative groups.

I understand that the term "country money" has been in common and widespread usage for a considerable period of time.