Cian O'Callaghan (Dublin Bay North, Social Democrats)
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204. To ask the Minister for Finance if he will review section 127B of the Taxes Consolidation Act 1997 to ensure the fair taxation of the affected workers; and if he will make a statement on the matter. [39562/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 127B of the Taxes Consolidation Act (TCA), 1997 provides that income arising to an individual from an employment exercised aboard an aircraft that is operated in international traffic shall be chargeable to tax in Ireland where the aircraft is operated by an enterprise that has its place of effective management in the State.

This charge to Irish tax applies to such workers in the same way that it applies to other Irish based employments: the income is chargeable to tax under Schedule E TCA, 1997, which is generally applied to every person having or exercising an office or employment in the State by virtue of Sections 19 and 112 TCA, 1997.

The provision was introduced in Finance (No.1) Act 2011 in order to address concerns in relation to the double non-taxation of air crew working for Irish carriers on international routes and, as the Deputy may be aware, this measure has been subject to on-going legal proceedings since 2018.

I would like to assure the Deputy that, as is the case with all tax measures, the aim is to ensure that the on-going effectiveness and appropriateness of this provision is considered on a regular basis, most recently in detail as part of Budget 2019. I remain satisfied that the legislation and its operation are in accordance with international tax principles and that it ensures the effective and fair taxation of workers impacted.