Information Circular No 23/2016: Free Travel Warrants

By Industrial Relations Officer

With effect from 1st November 2016, all free travel warrants will be subject to tax; PRSI; USC and PRD deductions.

The decision is a consequence of the Revenue Commissioners determining that the issue of free travel warrants constitutes a benefit in kind (BIK) and, as such, should be subject to tax; PRSI; USC and PRD deductions.  This approach is in line with the long established case law which provides that expenses incurred travelling from home to work and work to home are expenses of travelling which are not necessarily incurred by an employee in the performance of the duties of his/her office or employment, and are therefore, subject to tax etc.

The Department of Defence has settled the BIK tax liabilities on free travel warrants for the period up to 31 December 2012 and is now settling the BIK liability up to a current date.  In this regard, it is not proposed to seek payment from individuals in respect of any tax liabilities arising from the issue of free travel warrants up to 1st November 2016.

Duty travel warrants meet the Revenue Commissioner requirements and will not be subject to tax; PRSI; USC and PRD deductions.

 

Issued on the 04/11/2016

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