‘No plans’ to ban Russians from employee tax incentive programme

The Government does not plan to exclude Russian nationals from participating in the Government’s controversial Special Assignee Relief Programme (Sarp), the Department of Finance has confirmed. The programme provides income-tax relief for certain people who are assigned to work in in the State from abroad.

A spokesman for the department said that “in the absence of a ssanction, any decision to restrict the access of Russian nationals to incentives such as Sarp would be contrary to the spirit of Ireland’s existing equality legislation”.

The spokesman cited Ireland’s Employment Equality Acts and the Equal Status Acts which prohibit discrimination on the grounds of race, including nationality or national origins, within a wide range of employment and employment-related areas.

“This is also in keeping with article 14 of the European Convention on Human Rights,” the spokesman said.

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The most recent figures show that previously Russia-based participants in the scheme gave rise to €500,000 in tax reliefs over a three-year period.

Minister for Finance Paschal Donohoe confirmed in a reply to a parliamentary question that Sarp relief for previous residents of Russia cost the State €180,000 in 2019, concerning 20 claimants. These claimants were resident in Russia before arriving in the State.

Mr Donohoe said it should be noted that these individuals may not be Russian nationals.

Confidentiality

In a written Dáil reply to Patricia Ryan of Sinn Féin on the issue, Mr Donohoe said: “The number of instances where the employer indicated that the relevant employee was a Russian national, for the years 2017 – 2019 cannot be provided due to Revenue’s need to protect confidential taxpayer information, as there are fewer than 10 cases involved in any given year.”

Mr Donohoe confirmed for the year 2018 the cost to the State from 12 previously Russia-based participants was €200,000 and the cost in 2017 was €120,000 from 10 previously Russia-based participants.

Asked should Russian nationals be barred from participating in Sarp due to the Russian invasion of Ukraine, Ms Ryan said on Friday: "Not unless they are the subject of sanctions."

She added: “While we support the abolition of Sarp in general we are not calling for specific individuals to be banned from taking part in the scheme, unless they come under current or future sanction.”

The cost of the previously Russia-based participants to the exchequer is a small fraction of the overall cost of the Sarp programme. Revenue figures show that in 2019, there were 1,574 individuals recorded on 461 Sarp Employer Returns and the estimated exchequer cost of Sarp in 2019 was €38.2 million.