Bríd Smith (Dublin South Central, People Before Profit Alliance)
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241. To ask the Minister for Public Expenditure and Reform if professional fees are paid by his Department on behalf of employees; if so, the total number involved; and the amount of each fee. [42706/20]

Michael McGrath (Cork South Central, Fianna Fail)
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The information requested for my Department and the Office of Government Procurement, which is also part of my Department, is set out in the tables below. As agreed with the Deputy, the information provided is limited to the previous 12 month period.

The statutory position up to 31 December 2010 was that the reimbursement or payment of an annual membership fee of a professional body, on behalf of an employee, by an employer did not give rise to a taxable benefit-in-kind if membership of that professional body was "relevant to the business" of the employer. However, under the Finance Act 2011, my Department is, since 1 January 2011, statutorily obliged to deduct PAYE, PRSI and USC on the (repayment\reimbursement) of an annual membership fee of a professional body.

Following the publication of the Finance Act representations were made by various bodies and Revenue issued an eBrief (no. 19/11) clarifying the position.  Revenue says that whilst each case should be examined on its own facts and circumstances, it will allow a tax deduction for an employee in the following circumstances for the tax year 2011 and subsequent years:

1. where there is a statutory requirement for membership of a professional body etc.;

2. where there is a requirement for a practicing certificate or license;

3. where all of the following conditions are satisfied:

4. the duties of the employee and the duties of the employment require the exercise or practice of the occupation or profession in respect of which the annual membership fee refers; and

5. the employee so exercises or practices the occupation or profession in respect of which the annual membership fee refers; and

6. Membership of the professional body is an indispensable condition of the tenure of the employment.

*Fees paid in UK pound or US Dollars

Office of Government Procurement