TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Commission Ends Infringement Proceedings against Ireland for Air Travel Tax

The EU Commission has ended infringement proceedings against Ireland on foot of amendments introduced in Finance Act 2011 to Air Travel Tax.

FA 2011 introduced a €3 rate of air travel tax for flights departing Irish airports to take effect from 1 March 2011. This replaces the existing two rate structure consisting of a standard rate of €10 and a reduced rate of €2 for shorter journeys. Finance (No. 2) Act 2011 goes even further by providing for the reduction to zero of the air travel tax, subject to Ministerial Order.

The air travel tax was introduced in March 2009 at a rate of €10 on air passengers whose destination was greater than 300km from Dublin Airport. Shorter flights were taxed at just €2 per passenger.

The Commission issued a letter of formal notice of infringement proceedings on the grounds that the tax breached EU law by charging passengers on flights to other Member States more than passengers on domestic flights. As Ireland now levies the same charge regardless of destination, the Commission has decided to close its infringement procedure.