Thursday, 13 July 2023
Department of Transport, Tourism and Sport
271. To ask the Minister for Transport, Tourism and Sport further to Parliamentary Question No. 72 of 5 July 2023 and the details provided in respect of the IAA and Irish Air Navigation, if he can provide clarity on matters (details supplied). [35521/23]
Following my 5 July reply in relation to PQ 33062/23, information on IAA and IANS as requested by the deputy is outlined below.
In 2021, in response to COVID-19, staff salaries above a certain threshold were reduced. In response to a recommendation of the Internal Disputes Resolution Board, and approved by the AirNav Ireland Board, a lump sum payment, equivalent to the deducted amount in 2021 of €19,340, is expected to be paid in 2023, consistent with all other employees whose pay was reduced in 2021.
Benefit in Kind
The original market value of the company car, leased in 2019, is €49,721. BIK is calculated at 30% of the value of the car for the purposes of CEO remuneration disclosures, namely €14,916 per annum.
In the norm, BIK, in this case the private use of a company car, is subject to payroll taxes (PAYE, PRSI and USC). Because the CEO has an electric vehicle with an original cost below the Revenue approved exemption threshold of €50,000, there was no assessment to BIK taxes in the years 2020, 2021 and 2022.
Therefore, no payroll taxes were paid by the CEO in respect of his company car in those years. In 2023, the Revenue approved exemption threshold was amended to €45,000. As this was below the original cost of the vehicle by €4,721, the taxable benefit in 2023 to the CEO has been assessed as €1,062 (€4,721 x 22.5%).
The taxable benefit of €1,062 will be subject to payroll taxes which will be deducted from the CEO’s salary.
In 2021, in response to COVID-19, staff salaries above a certain threshold were reduced by 9.75% in January to November. In response to a recommendation of the Internal Disputes Resolution Board, subject to approval by the IAA Board, a lump sum payment, equivalent to the deducted amount in 2021 is expected to be paid in 2023 to all employees whose pay was reduced in 2021. This will apply to the new IAA Chief Executive of IAA post vesting who was an employee at the time.
Benefit in Kind
Not applicable to new Chief Executive IAA post vesting.
272. To ask the Minister for Transport, Tourism and Sport further to Parliamentary Question No. 72 of 5 July 2023, if he can provide further clarity and a breakdown on the requested information (details supplied); and if he will make a statement on the matter. [35585/23]
Following my 5 July reply in relation to PQ 33062/23, information on the daa as requested by the deputy is outlined below.
This related to payment of c.26 days annual leave (6 days carried forward from 2021 and 20 days for 2022). The majority of the balance was accrued during 2022 when the CEO was unable to take leave given the challenges being faced by the business at Dublin Airport throughout 2022.
This relates to a benefit paid for by daa as part of the CEO’s contractual entitlement. The payment is classified as a Benefit in Kind and the CEO paid all required employment taxes associated with this benefit.
The value of €35K p.a. relates to the amount calculated per Revenue guidelines in determining the annual value upon which the recipient of a company car should pay Benefit in Kind. The CEO paid all relevant employment taxes based on the value calculated. The vehicle purchased by daa in 2019 and upon which the calculations are based was a Range Rover.