Ruairi Ó Murchú (Louth, Sinn Fein)
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367. To ask the Minister for Finance if he will provide an update on the work that is being done in his Department to fix the anomaly whereby many workers who live in Northern Ireland and who work in the Republic are precluded from working from home due to the significant Revenue Commissioners implications for their employers; if he will detail any contacts that his Department has had on the matter with the equivalent British Department in the past six months; and if he will make a statement on the matter. [1994/23]

Ruairi Ó Murchú (Louth, Sinn Fein)
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368. To ask the Minister for Finance if he will provide an update on the survey that is being carried out related to cross-border workers and the issues that they face in relation to working from home, income tax and social protection; and if he will make a statement on the matter. [1995/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 367 and 368 together.

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. The availability of remote working is primarily a matter between the employer and the employee. 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 very complex matter and the State cannot move unilaterally. Discussions in relation to global mobility and the tax policy implications for cross border workers have already started at both the EU and the OECD.  My Department is fully engaging with all the relevant stakeholders and is contributing to the policy discussions on the issue. 

The following three issues are actively 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. The ESRI has been commissioned to undertake a research project in this area. It is understood that this work is in progress by the ESRI.

2. Minimise Administrative Burden – Revenue are 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.

In this regard, to answer the Deputy’s specific question in relation to any contacts between my Department and their counterparts in the UK, over the course of 2022 officials from my Department had two meetings to facilitate an exchange of information on the issue of cross-border working with representatives of HM Treasury.

Finally, issues in relation to cross-border workers and social protection/social insurance are primarily a matter for the Minister for Social Protection and her Department.