Pearse Doherty (Donegal, Sinn Fein)
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88. To ask the Minister for Finance the estimated cost of implementing an exemption from benefit-in-kind tax for professional subscription fees that are considered commercially necessary; and if he will make a statement on the matter. [29778/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Since 2011, professional membership fees are only deductible under section 114 of the Taxes Consolidation Act 1997 where they are incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment. In the context of professional fees, this generally means where:

- the duties of his or her employment necessitate that the employee is a member of a professional body, or holds a practicing certificate or licence, and

- the employee cannot exercise those duties without that membership or certificate.

Where such fees are not reimbursed by the employer then the employee concerned can claim the appropriate tax relief. As regards deciding what fees might be covered by such a definition, I am advised by Revenue that if an employee failing to hold a professional membership would prevent an employer from carrying on its trade, it is reasonable to conclude that the employee’s qualification or membership fee was necessarily incurred, regardless of whether the barrier to trade was created by statute or commercial necessity. Where the employer or employee considers that an expense was commercially necessary, the employer or employee must be able to demonstrate that the employee would be unable to carry out his or her duties if he or she did not hold such qualification.

Further guidance, including a series of examples of where the relief applies, is available on www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-18.pdf.

I am further advised by Revenue that the information from tax returns and other sources available to it does not provide a basis for estimating the cost of extending this measure to include other professional subscriptions paid by employees.