Revenue failed to tax €2m staff benefit

BENEFIT-IN-KIND TAX:DELAYS BY the Revenue in identifying obligations to tax benefit-in-kind (Bik) of approximately €2 million paid to its own staff is highlighted in the report.

In the course of drafting a Statement of Practice during 2006, officials raised concerns in relation to the tax treatment of benefits received by Revenue's own staff in respect of travel to and from work.

A working group reviewed benefits which had accrued from January 2004 to June 2007. About €2 million accrued by way of Bik during the period reviewed. This comprised €1.7 million for use of official vehicles by officers for travel to and from work, and €0.3 million paid under agreements made with staff whose work began or ended between the hours of 11pm and 8am in locations not served by public transport.

An overall liability was calculated at €1,656,920, including interest and penalties.

The relevant Inspector of Taxes was informed of Revenue's intention to make a voluntary disclosure and arrangements were put in place to ensure full tax compliance in future. A settlement was reached and payment was made in November 2007.

The issue of travel expenses in the Irish Prison Service also features in the report. A senior officer was paid €24,117 in 2007 for travel to and from his workplace.