Mick Barry (Cork North Central, Solidarity)
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51. To ask the Minister for Finance if he will direct the Revenue Commissioners to respond to the past four letters sent to them by PDFORRA regarding the status of flat rate expenses. [11386/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the legislation governing the deductibility of expenses incurred in employment, as set out in section 114 of the Taxes Consolidation Act 1997, provides that, for an expense to qualify as a deduction against income from an office or employment, the expense must be wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment.

For ease of administration, where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer, Revenue have over the years provided a facility whereby a flat rate expense allowance may be claimed.  I am further advised by Revenue that following detailed, lengthy and comprehensive negotiations with PDFORRA, a flat rate expense was agreed in June 2016 in respect of the specialist cleaning of ceremonial uniforms for all enlisted personnel not in receipt of a uniform replenishment allowance.  The flat rate expense was granted with effect from 2015.  The discussions involved an examination of the categories of duty carried on by the relevant members, the types of expenses wholly, necessarily and exclusively incurred in such duties and the nature and purpose of any allowances currently paid in respect of those duties. 

I understand from Revenue that there has been a significant body of further correspondence from PDFORRA seeking to extend the scope of the flat rate expense notwithstanding the comprehensive nature of the negotiations which led to the agreement of June 2016.  While Revenue have advised PDFORRA on a number of occasions that the issues raised in this correspondence were fully explored and addressed during the negotiations which led to their acceptance of the flat rate expense, I understand that the most recent correspondence has been replied to and that PDFORRA has been invited to a meeting in order to further clarify matters.