Thursday, 14 February 2019
Department of Finance
The Deputy will be aware that the administration of the tax code is exclusively a matter for Revenue. Section 101 Ministers and Secretaries (Amendment) Act 2011 specifically provides that the Revenue Commissioners are independent in the performance of their functions under, or for the purposes of, tax laws. Consequently, I am precluded from giving any direction or instruction to Revenue in this regard. Any changes in practice to the Flat Rate Expense (FRE) regime are a matter for Revenue.
I am advised by Revenue that it is not intended to further review the FRE categories already identified as not meeting the statutory requirement for tax deduction set out in section 114 Taxes Consolidation Act 1997. The purpose of the FRE review is to ensure that the expenses granted to each employment category remain justified and appropriate to modern day employments and work practices. Each category will be examined separately in light of the legislative requirements. Only those categories which meet the criteria for deduction in the legislation will be in a position to retain a FRE. It is intended to have the review completed for all categories by the end of 2019.
Revenue has confirmed there is no change to the implementation date of 1 January 2020 for any changes that may be made to the FRE regime, to ensure the changes do not impact on any specific group earlier than the rest.