Paul Donnelly (Dublin West, Sinn Fein)
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17. To ask the Minister for Finance the reason a taxi company (details supplied) pay no tax in Ireland but taxi drivers who use the service must pay tax to keep their tax clearance to enable them to obtain their small public service vehicle, SPSV, licence. [61056/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, I am unable to comment on the tax affairs of individual taxpayers, including companies. The obligation to protect taxpayer confidentiality is provided for by section 851A of the Taxes Consolidation Act, 1997.

However, I can assure the Deputy that Ireland has a transparent tax code, with the liability to Irish corporation tax being primarily determined by a company’s tax residence. The relevant rules are set out in Part 2, Chapter 2 of the Taxes Consolidation Act 1997. Companies that are incorporated in Ireland are regarded as resident in Ireland for tax purposes unless they are treated as resident in a tax treaty country under the provisions of a double taxation treaty. Foreign incorporated companies that are centrally managed and controlled in the State are also regarded as resident in the State for tax purposes.  In general, Irish tax resident companies pay tax on their worldwide income and chargeable gains. Non-resident companies pay Irish tax on their Irish source income, including trading income of an Irish branch or agency. Where tax reliefs or credits exist to reduce a company’s Irish tax liability, they are provided for in legislation and may only be availed of where the legislative criteria for relief are satisfied.

In relation to income tax, the rules are again transparent with any liability based on the criteria of whether the individual is resident, ordinarily resident, or has an Irish domicile. Every individual who is a chargeable person for a year of assessment is assessable to income tax that year under the self-assessment system, as provided for by Part 41A of the Taxes Consolidation Act 1997.   Under the self-assessment regime an individual is responsible for ensuring that their tax liability is calculated correctly, including availing of any tax reliefs and credits, and that any tax owing is paid on time.  

Compliance with the above tax obligations in the case of both companies and individuals and eligibility for tax reliefs are monitored by Revenue on an ongoing basis.

The Deputy mentions that tax clearance is one of the conditions for holding a Small Public Service Vehicle (SPSV) licence.  The conditions attached to such licences are a matter for the National Transport Authority. A Tax Clearance Certificate is confirmation from Revenue that an applicant's tax affairs are in order.