Law Society of Ireland

Lobbying Organisation Law Society of Ireland

Date published 06 Sep, 2018

Relevant Matter Legislation

Public Policy Area Taxation

Period 1 May, 2018 to 31 Aug, 2018

Specific Details Benefit-in-kind on professional subscriptions

Intended results In eBrief No. 04/18 Revenue updated their guidance for the interpretation of section 114 TCA 1997 in relation to professional membership fees. Revenue’s position on the ‘wholly, exclusive and necessarily” test is stricter than that set out in previous guidance. The circumstances in which professional fees are viewed by Revenue as incurred ‘wholly, exclusive and necessarily’ in the carrying on of an office or employment are (1) where there is a statutory requirement for membership of a professional body or to hold a practising certificate and (2) where statutory provisions must restrict the ability of an individual to fulfil the full duties of an office or employment unless they are members of a relevant professional body. The new Guidance does not taken into account the maintenance and promotion of standards, education and the continuing professional development of the professional sector by professional bodies. Payment of membership fees to a professional body and completion of continuous professional development is often a requirement of the professional body in order for an individual to maintain their professional qualification. Revenue’s position on second or more memberships penalises the employee or office holder who wishes to boost their skillset with a second relevant qualification in their chosen field and who is paying a subscription fee in relation to that qualification. There is a concern that Revenue’s new guidance may lead to a decline in membership of professional bodies. By way of comparison in the UK, a statutory list of approved professional bodies is maintained whereby subscriptions to such bodies are not treated as a taxable benefit if paid by an employer and if the activities of the body are of direct benefit to, or concern the profession practiced in, in the performance of the duties of the employment. The stricter interpretation of the wholly, exclusive and necessarily test in relation to professional subscriptions is not welcomed by the Law Society nor is the apparent narrow view taken by Revenue on subscriptions paid to two or more professional bodies. Our tax system should help rather than hinder the development of an educated and skilled workforce in order to attract inward investment to Ireland.

Name of person primarily responsible for lobbying on this activity Ken Murphy, Director General

Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?) No

Did you manage or direct a grassroots campaign? No

Was this lobbying done on behalf of a client? No

Lobbying activity

The following activities occurred for this specific Subject Matter Area.

Submission (1)

The Society was signatory to the publication "Building Ireland's Future - The Role of the Professions'; which detailed the value of the professions and underlined the importance of a practical approach to the tax treatment of subscriptions of professional bodies. See the full submission at: https://lawsociety.ie/policyandlawreform

Designated public officials lobbied

The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them. As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.

Paschal Donohoe Minister (Department of Finance)