Written answers

Thursday, 22 September 2022

Photo of Cormac DevlinCormac Devlin (Dún Laoghaire, Fianna Fail)
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114. To ask the Minister for Finance the number of persons who have availed of remote working relief to date; and if he will make a statement on the matter. [46282/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, in the Finance Act 2021, I enhanced and formalised the tax arrangements for working from home in line with Government policy to facilitate and support remote working. Accordingly, for the tax year 2022, an income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heat and broadband in respect of those days spent working from home can be claimed by taxpayers. The amount of the relief will depend on the particular circumstances of the remote worker in terms of the level of costs incurred and their marginal tax rate.

As of 19 September 2022, the volume of Remote Working Relief claims and their monetary value are as follows:

- For 2022 (year to date), 2,643 claims to the value of €1.1 million,

- For 2021, 69,280 claims to the value of €12.4 million,

- For 2020, 118,000 claims to the value of €19 million.

It should be noted, however, that these are unlikely to be the final figures for such claims, as taxpayers have up to four years to file their Income Tax Returns for a year and claim any additional expenses due.

Remote Working Relief claims can be made via Revenue’s MyAccount, for years up to and including 2022. If making a claim for 2022 during 2022, the taxpayer is required to upload a readable image of his or her receipt(s) to Revenue’s Receipts Tracker during the application as the amount claimed increases the taxpayer’s current year tax credits for which he or she will see a benefit in his or her next payroll payment.

Separately to the foregoing, where e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC.

However, I wish to advise the Deputy that the €3.20 daily allowance is a discretionary payment by an employer to his or her employees. No information is available about the numbers in receipt of such payments because this data is not captured in the information that employers report to Revenue.

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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115. To ask the Minister for Finance if he will review and reform the advantageous tax regime enjoyed by IREFs and REITs following the sharp decline in taxes paid by institutional property investment funds and recommendations made by the Commission on Tax and Welfare. [46287/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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An Irish Real Estate Fund (IREF) is an investment undertaking where 25% or more of the value of that undertaking is made up of Irish real estate assets. The regime was introduced to address concerns raised regarding the use of collective investment vehicles by non-residents to invest in Irish property. A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. The function of the REIT framework is to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.

I am aware that there has been a reduction in Withholding Tax (WHT) paid by IREFs in 2021, relative to the amount paid in the preceding year. My officials have requested that Revenue undertake a review to identify the reason for this change.

I am advised that the initial focus of the review is a detailed analysis of the information contained in the 2021 IREF Financial Statements, IREF Withholding Tax Returns and Form 1 (IREFs) Income Tax Returns. The review encompasses the consideration of various risk factors, a key focus is the identification of cases for compliance interventions to ensure perceived risks are properly and robustly addressed. The analysis involves detailed examination of tax returns and financial statements for a number of years and will include a review of the transactions undertaken by IREFs, and of distributions made, to ascertain if the distributions have been treated in accordance with the legislative provisions.

Where this work identifies possible non-compliance with the relevant legislation, Revenue will undertake appropriate compliance interventions. Should any deficiencies in the legislative provisions for IREFs be identified by this review, this will be brought to the attention of my Department and addressed.

I have noted the recommendation by the Commission on Taxation and Welfare that the Government undertake a review of REITs and IREFs, having regard to the role of institutional investment in the Irish property market.

The Commission’s recommendations are significant and wide ranging, and it is important to allow time for detailed consideration. It is my intention to provide an initial response to some of the recommendations as part of the upcoming budget. It would not be appropriate for me to speculate on what specific elements of the report we might act on in advance of that process concluding over the coming weeks.

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