I would argue that, for the period of your maternity leave, you were not in your employers' "service" and so, in computing your average emoluments for the last 36 months of service, you cut out the maternity leave period and go back a further six months.
Hi Bensboys,
According to the Taxes Consolidation Act, 1997, Schedule 3, SCSB is calculated on "emoluments from the office or employment". This anything paid by your employer, such as pay, overtime, bonuses, etc.
I don't like to be the bearer of bad news, but Revenue are correct. Maternity Benefit is not an emolument paid by your employer.
Schedule 3 refers to the emoluments for the last three years' of service - so the question remains are emoluments paid while on maternity leave related to a period of "service"?
Thanks Nige, Is it possible to challenge revenue on this and if so what is the best way to go about this?
What's to challenge? They paid you during your maternity leave, so clearly it's a period of paid service, how could it be anything else, or what else do you argue it should be classified as?
The challenge would be on the grounds that my tax exemption as calculated using the scsb calculation has been reduced due to the fact that I took maternity leave during the 3 years prior to redundancy.
Is this not unfair treatment of mothers who availed of that maternity leave?
To put this another way …
SCSB is a relief from the income tax charged on payments made in connection with the loss of an employment.
Since your Maternity Benefit will not be included in the calculation of your ex-gratia payment and, therefore, not subject to income tax, how are you being discriminated against?
You could look at it another way in that you already received a tax exemption on the amount as the top up was taxed more favourably due to the state benefit being tax free at the time.
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