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Remember this, from a few weeks ago?
It's getting an airing on the floor of the Oireachtas Finance Committee and several opposition parties seem convinced that the PUP - whatever about government policy - is, under law, not taxable… https://twitter.com/gavreilly/status/1319678199647916032
It's getting an airing on the floor of the Oireachtas Finance Committee and several opposition parties seem convinced that the PUP - whatever about government policy - is, under law, not taxable… https://twitter.com/gavreilly/status/1319678199647916032
The dispute concerns PUP payments between March 20 and August 5. Only then did a law kick in to put PUP on have a legal footing; when it did so, it classified previous payments as 'section 202 payments' which, elsewhere in law, are labelled as untaxable… (1/3)
…but the government says that was a "vehicle of convenience" because Section 202 payments are usually means-tested and one-off, which PUP wasn't.
Govt and Revenue both believe therefore that it's taxable, though are giving people four years to repay their obligations (2/3)
Govt and Revenue both believe therefore that it's taxable, though are giving people four years to repay their obligations (2/3)
…but the financial stakes could be meaningful: if someone was on PUP for the full 21-week period concerned, they received €7,350 on PUP, and would then find themselves having to repay 20-40% of that depending on their tax bracket. (3/3)
Vote now called at the Oireachtas Finance Committee on whether to include this clause, copperfastening/enshrining that PUP is subject to income tax, in the Finance Bill
Section passes by 5 votes to 4…
