University tax change may hit key research

CRUCIAL checks on academic standards and joint research between universities could be under threat following a clampdown by the taxman on how expenses and other payments are treated.

The Revenue Commissioners have told University College Cork it must tax payments to visiting academics or other non-staff providing services as external examiners, reviewers or quality assessors, sports coaches or external members of interview boards. In addition, PAYE and PRSI must be deducted from expenses or subsistence payments to lecturers, adult education teachers and others coming to work at UCC.

“For example, if a lecturer based at another university travels to UCC to deliver a lecture, such travel is regarded as private travel and any expenses would be subject to PAYE/PRSI,” UCC chief financial officer Diarmuid Collins told staff in a letter about the changes.

Although it is understood that such instructions have not been issued to other universities, it is likely that similar treatment of such payments will be expected.

A Revenue spokesperson would not comment on whether a similar review of PAYE/PRSI has taken place at other third-level colleges.

But the revised tax treatment is already causing unease among academics at UCC, particularly those active in research who take part regularly in external conferences and seminars to share their work and findings. Many have stated their unwillingness to deliver guest lectures or work as external examiners for which they are normally only paid expenses, in email correspondence on the issue seen by the Irish Examiner.

They were angry that the kind of work envisaged as being taxable should be seen as anything other than part of their core duties, which would qualify them as non-taxable.

“My individual profile, the department profile and the university’s profile could be affected... This doesn’t seem to be a good way to encourage academic [ex]changes between universities or countries,” wrote one UCC staff member.

Another described the proposal as “a punitive tax on knowledge, enquiry and the free sharing of ideas”.

The external examiner process is a vital quality assurance tool under which academics from outside colleges validate the courses and programmes offered in the higher education sector.

The Irish Federation of University Teachers (IFUT) said that, although that process should not be in any danger, current arrangements must remain in place unless changes are negotiated.

“If there’s a decrease in travel entitlements, people will not be prepared to engage in travel for work. Going to and from other colleges is part and parcel of the work and people shouldn’t be out of pocket for that,” said IFUT general secretary Mike Jennings.

A UCC spokesperson said the college’s finance department has sought a meeting with the Revenue Commissioners to iron out the specifics of any changes required. He added that they will also communicate the implications to staff.