Ruairi Ó Murchú (Louth, Sinn Fein)
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151. To ask the Minister for Finance the work being done in his Department to fix the anomaly by which many workers who live in the North and work in the South are precluded from working from home because of the significant revenue implications for their employers; and if he will make a statement on the matter. [54998/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Under our domestic tax rules, an individual who holds a private sector employment in the State is chargeable to tax in the State in full on the emoluments of the employment and such income is also within the scope of the PAYE system of payroll deductions at source. This treatment applies to individuals who are resident in the State for tax purposes and also to individuals who are not resident in the State for tax purposes, but who work here full-time.

It is important to clarify that workers who reside in Northern Ireland and work in the State are not precluded from working from home and the availability of remote working is primarily a matter between the employer and the employee.

Similarly, an Irish private sector employer may allow an employee to work remotely in Northern Ireland; however, such arrangements may result in implications for the employer from a UK tax perspective.

More generally, the issue of cross border workers and the availability of remote working options has potential tax implications not only for this country but also on an international level, given the increase in the extent of remote working, as a result of the Covid-19 pandemic. It is a complex matter and it may not be appropriate for the State to respond unilaterally. Discussions in relation to global mobility and the tax policy implications for cross border workers have already started at an international level (OECD and EU). My Department is fully engaging with all the relevant stakeholders and is contributing to the policy discussions on the issue.

The following three lines of action are currently being pursued:

1. Obtain Better Data – there is a general acceptance that data in relation to the nature and extent of cross-border working could be improved. A research project has been commissioned with the ESRI will be of benefit to all concerned.

2. Minimise Administrative Burden – Revenue is currently looking at ways to minimise and simplify the administrative burden insofar as possible.

3. International Discussions – The Department of Finance will actively engage in any international discussions on the policy implications of cross-border working. The Department will also engage bilaterally with other jurisdictions as appropriate to the circumstances.