Gerald Nash (Louth, Labour)
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160. To ask the Minister for Finance the reason support from his Department by way of short-time work support is not taxable when support from jobseeker's support casual dockets is taxable given the impact on workers (details supplied); and if he will make a statement on the matter. [5917/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised that Short-Time Work Support is a form of Jobseeker's Benefit and is an income support payment for employees who have been temporarily placed on a shorter working week by their employer, due to business challenges affecting their employment. The payment is made in respect of the employee’s regular salary for the days that they are no longer working. For example, where an employee’s working week has been reduced from a five-day work pattern to a three-day work pattern, they can receive Short-time Work Support for the other two days.  Short-time work must be systematic and show a clear repetitive pattern of employment. The administration of this support is under the remit of the Department of Social Protection.

The statutory basis for the long-standing exemption from income tax for the Short-Time Work Support is contained in section 126 of the Taxes Consolidation Act 1997 which provides that taxation shall not apply in relation to Jobseeker’s Benefit or Jobseeker’s Benefit (self-employed) paid or payable, to a person employed in short-time employment.  Short-time employment is defined in the Social Welfare Act 2005, as employment in which, for the time being, a number of days is systematically worked in a working week, which is less than the number of days which is normal in a working week in the employment concerned.  Full-time employees who have been placed on a reduced weekly work pattern can apply for the support. Employees must work 3 days per week or less to qualify, having previously been employed on a full time basis.

Revenue advise me that in situations where an employee’s contract of employment sets out that workdays are flexible in nature, then this employment will not meet the definition of ‘short time employment’, and the employee will be taxed as normal for the days worked.

Finally, and as the Deputy may be aware, under Section 851A of the Taxes Consolidation Act 1997, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.