Written answers
Tuesday, 26 May 2026
Department of Finance
Tax Code
Cathal Crowe (Clare, Fianna Fail)
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200. To ask the Minister for Finance his response to recent assertions that enhanced reporting requirements introduced in January 2024 are causing small businesses and restaurants to scale back modest staff gestures such as retirement lunches and gifts for special occasions, due to concerns around compliance obligations; and if he will make a statement on the matter. [39655/26]
Simon Harris (Wicklow, Fine Gael)
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As the Deputy is likely to be aware, section 897C of the Taxes Consolidation Act 1997 requires employers to report details of certain expenses or benefits made to employees and directors. These requirements are referred to as the enhanced reporting requirements (ERR). The detailed reporting of these expenses or benefits commenced on 1 January 2024.
The reportable benefits relevant to the ERR are:
- the remote working daily allowance of €3.20,
- the payment of travel and subsistence expenses, and,
- the small benefit exemption.
While employers were not previously required to report the details of individual non-taxable benefits/expense payments/perquisites, there was always certain conditionality to be satisfied in order for an employer to provide a tax-free benefit/expense payment/perquisite. The employer was therefore required to have sufficient controls in place as well as comprehensive supporting documentation and records to substantiate the preferential tax treatment. This detailed information would have been readily available to supply to Revenue upon request.
The ongoing reporting mechanism has been designed so that once verified and approved as a non-taxable payment, the employer now simultaneously reports the details of that payment to Revenue through ERR while processing the payment.
ERR enhances Revenue’s compliance framework to ensure that the correct amount of tax is collected at the right time. It results in optimal efficiency for compliant taxpayers and for Revenue. It is also an important source of data providing valuable information to assist my Department for policy making considerations and tax expenditure reviews.
I acknowledge that various stakeholders have stated that the requirements have increased administrative requirements for taxpayers, in particular for SMEs. That said, there has been very high compliance with ERR. Over 80% of businesses are availing of the integrated reporting that has been built into software systems. This makes the process of reporting as integrated and as seamless as possible.
In addition, Revenue has undertaken extensive stakeholder engagement since the announcement of ERR in Finance Bill 2022. The topic was discussed with practitioners and representative bodies at Tax Administration Liaison Committee (TALC) meetings during 2022 and 2023, and a TALC subgroup was set up specifically to address ERR. Further, Revenue conducted a survey, engaged with employers, their agents and their representative bodies and hosted a series of webinars between September 2023 and June 2024. At a recent meeting of the Cost of Business Advisory Forum, which focused on Reporting and Compliance, ERR was again discussed.
As with all tax policy, the operation of the ERR will be monitored and kept under review by my Department.
Emer Currie (Dublin West, Fine Gael)
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201. To ask the Minister for Finance to provide an update on his review of the taxation of retail investment with a view to ensuring that existing investors are included in future tax measures; and if he will make a statement on the matter. [39177/26]
Simon Harris (Wicklow, Fine Gael)
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I am aware that the current retail investment taxation system in Ireland has been characterised by stakeholders as complex and a disincentive to diversified investment by retail investors. I am committed to taking the necessary action to support this important sector.
As the Deputy may be aware, Budget 2026 introduced a reduction in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, from 41% to 38%. This change also applies to investments in Exchange Traded Funds (ETFs) that are taxed under these regimes.
I am very conscious that there is more to be done to support retail investment in Ireland. However, it is important to acknowledge that any amendments to the current system, requires a balance between encouraging retail investments and protecting the Exchequer. To that end, Budget 2026 included the commitment to publish a roadmap to simplify and adapt the current taxation framework for retail investments while retaining necessary and important anti-avoidance protections in a proportionate manner. The roadmap will be published in summer 2026.
Earlier this year, at the first annual Savings and Investment Forum, I announced my intention to introduce the legislative framework for a new Investment Account in 2026. This new account is a key aspect of the roadmap and will be aligned with the European Commission’s recommendation to develop accessible, consumer-friendly savings and investment accounts across Member States. The accounts should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable between providers, where possible. These accounts will be designed with stakeholders in mind, reducing the current complexity expressed by retail investors while also providing an easier and more accessible method of accessing capital markets for all Irish citizens.
In addition to the account, the work underway on the roadmap also includes considerations of the Funds Sector 2030 Review including the recommendations of the Funds Sector Review on the taxation of retail investment in relation to the issue of deemed disposal.
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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202. To ask the Minister for Finance if he is planning any changes to the section 481 film credit in the forthcoming budget, in particular to ensure improvements in quality of employment and training obligation of tax credit recipients. [39772/26]
Simon Harris (Wicklow, Fine Gael)
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Over the last number of budgets, the Irish Government have enhanced our tax incentives for film production and developed new measures for unscripted television production and the development of digital games. These measures complement the Government’s long-standing support to screen production and Irish creative industries, creating quality employment opportunities and supporting the expression of Irish culture.
It will take some time for these new measures to become fully established and to understand their impact on the audio-visual sector in Ireland, and it is important for this process to take place before considering further changes or additions to supports.
The Deputy will be aware that, as part of the application process for the film relief under section 481, applicant companies are required to sign an undertaking of compliance with all relevant employment legislation.
Furthermore, Ireland was one of the first countries in Europe to link its film tax credit to skills development, ensuring that sustainable growth across the screen industry provided structure and stability to Irish crew through these opportunities.
It is very important to recognise that the laws that underpin employment rights apply regardless of whether a company applies for section 481 or not, and they apply equally. The monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise, Tourism and Employment through the Workplace Relations Committee (WRC).
It is notable that significant progress has also been made in recent years in advancing the quality of employment in the sector through collective agreements; most notably, the ‘Shooting Crew Agreement’ and the ‘Construction Crew Agreement’ agreed in 2021 and 2022 respectively. The Deputy may also be aware that an independent facilitator was retained by Screen Ireland in 2023 to meet with key stakeholders; wherein copyright concerns were discussed directly with industry. As a result, stakeholders have agreed interim best-practice industry guidelines while pursuing a path towards a collective-bargaining agreement.
While not having a direct role in respect of employment rights policy, I and my officials will continue to encourage and support quality employment and skills training in the audio-visual sector.
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