Paul Murphy (Dublin South West, RISE)
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167.To ask the Minister for Finance further to Parliamentary Question No. 290 of 23 May 2024, the reason there is a delay in Revenue resolving an issue in relation to taxation of further education and training staff in comparison to staff in compulsory education; if he will request an urgent outcome to these discussions referenced; and if he will make a statement on the matter. [24582/24]

Michael McGrath (Cork South Central, Fianna Fail)
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The legislation governing the deductibility of expenses incurred in employment is contained in section 114 Taxes Consolidation Act 1997 (TCA). To qualify for tax relief under this section, any expenses of travelling (and subsistence relating to that travel) must be necessarily incurred in the performance of the duties of the relevant employment. For all other expenses, they must be wholly, exclusively and necessarily incurred in the performance of the duties of the relevant employment.

The provisions of section 114 TCA are strictly applied, with a body of case law supporting the interpretation and application of the section. Under the section, the expense must be incurred in the actual performance of the duties of the office or employment or as a direct consequence of those duties and should not arise because of the personal circumstances or preference of the individual.

Expenditure incurred by an employee or office holder which merely puts him or her in a position to exercise his or her employment or office would not be regarded as incurred in the performance of the duties of his or her office or employment. Accordingly, travel expenses between a person’s home and his or her normal place of work are not generally tax-deductible expenses.

The general position as set out in Revenue guidance, is that the normal place of work is where an employee works on a day-to-day basis. An employee's normal place of work is a question of fact that can only be considered based on the specific facts of each case.

I am advised by the Revenue Commissioners that, on 1 March 2024, a meeting in respect of this issue was held between their representatives and those from the Education and Training Boards Ireland and Department of Further & Higher Education, Research, Innovation and Science.

Revenue have further advised that they are currently awaiting information which was requested at this meeting in order to better understand the specific nature and terms of the work arrangements in place with External Authenticators. I am informed that Revenue will consider the matter and advise further regarding the tax treatment of this cohort upon examination of the requested information, once received.