GUINNESS employees are finding that their free perk of a daily pint of the black stuff is not as good for them as they thought.
Following a decision by the tax authorities, staff are expecting a tax bill of £25 a year on their company tipple. The Revenue Commissioners have decided that the free drink the company's 2,000 employees have been entitled to for centuries is taxable as benefit in kind.
The move, which took effect within the past month, means employees will have to pay tax on their free supply of the black stuff during the year.
Guinness employees are entitled to 24 bottles or cans of Guinness, Harp, Smithwicks or Kilkenny every three weeks. Up until last month, they were able to collect their ration of beer on a daily basis and either consume it on the premises or bring it home. Under a procedure currently being phased in by the company, they are now obliged to collect their crate of beer once every three weeks.
A spokesman for Guinness said the practice of giving free beer to its employees probably dates back to the foundation of the company in 1759. "It's a tradition within the brewing industry on a global basis that the workers should enjoy the product they produce," he said.
According to the spokesman, the company was advised a few months ago by the Revenue Commissioners that the free drink supply was going to be taxed as benefit in kind in the current tax year. "We asked the Revenue Commissioners to reconsider but they decided to go ahead and apply it," he said.
"Employees will still be able to enjoy our product, but unfortunately there will now be a tax placed on that enjoyment. Obviously we accept the new system that the Revenue Commissioners have applied", he said.
The spokesman added that he did not expect any fall in staff up take of the beer entitlement.
A shop steward said workers were "worried" that the tax would be extended to other perks such as free meals. "Our biggest problem is where does it end?" he said.