Ruairí Ó Murchú (Louth, Sinn Fein)
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99. To ask the Minister for Finance if he will provide an update on the work being carried out in his Department to fix the anomaly where many workers who live in Northern Ireland and who work in the South are precluded from working from home due to the significant Revenue implications for their employers; if he will detail any contacts 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. [28014/24]

Jack Chambers (Dublin West, Fianna Fail)
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The tax treatment associated with cross-border working has been subject to ongoing discussions in recent years, particularly given the increase in remote working as a result of the Covid-19 pandemic. However, cross-border working gives rise to complex issues involving shared taxing rights between different jurisdictions.

It should be noted 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 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. As such, any potential implications that may arise from such arrangements are outside the scope of my direct remit and that of my Department.

As cross-border working and the availability of remote working options have potential tax implications not only on an island of Ireland basis, but also internationally, it is important that the wide range of policy considerations that arise are fully understood and considered. The best place for this is at an OECD level, to work through the various issues thoroughly and to minimise the potential for unintended consequences. The OECD has commenced its work on global mobility and my officials will continue to engage on this matter.

More generally, my Department is continuing to engage on this matter as follows:

1. Obtain Better Data

There was a general acceptance that data in relation to the nature and extent of cross-border working could be improved. In this regard, my Department commissioned the ESRI to undertake a research project in this area. The ESRI recently published a paper entitled ‘A Study of Cross-Border Working on the Island of Ireland’. This paper estimates the number of cross-border workers, as well as providing an overview of the profile and characteristics of cross-border workers.

2. Minimise Administrative Burden

Revenue has looked at ways to minimise and simplify the administrative burden insofar as possible. Revenue has published guidance in this regard which will be of assistance to employers and employees.

3. International Discussions

My Department is actively engaging in any international discussions on the policy implications of cross-border working. My Department will also engage bilaterally with other jurisdictions as appropriate to the circumstances. To answer the Deputy's specific question, my Department has not had direct engagement with HM Treasury on this matter in the last six months.