133. Deputy Rose Conway-Walsh asked the Tánaiste and Minister for Finance if income tax on tips for minimum wage workers is tracked by the Revenue Commissioners; if so, the amount of tax revenue collected on income tax on tips for minimum wage workers for each of the previous five years; if not, if the Revenue Commissioners have the capability to track this; and if he will make a statement on the matter. [50045/26]

It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation.

Section 19 of the Taxes Consolidation Act (TCA) 1997 sets out that tax under Schedule E shall be charged in respect of every public office or employment of profit. Section 112 of the TCA 1997 brings into charge all salaries, fees, wages, perquisites or profits whatever arising from an office or employment. Therefore, the long-standing position is that all tips, gratuities and service charges arising from an office or employment are chargeable to income tax under Schedule E in accordance with section 112.

Tips and gratuities paid to the employer and subsequently paid out to an employee should be included in pay for the income tax week or month in which they are paid out. These tips and gratuities constitute pay for the purposes of the PAYE system. The employer is not required to provide a separate breakdown to Revenue detailing these amounts.

In a situation where an employee receives tips directly from customers, the employer is not obliged to operate PAYE. The tips are subject to tax and should be included by the employee in his or her income tax return. There is no requirement that such income from tips be itemised separately from other forms of income on the Income Tax return.

Additionally, Income Tax return and payroll data held by Revenue does not identify minimum wage workers.

I am advised by Revenue, it is therefore not possible to provide the information requested with regard to the amount of tax revenue collected on tips, as income from tips is not required to be recorded separately from other income by either the employer or the employee by Revenue.