asked the Minister for Finance the position arising from the Supreme Court's decision on the taxation of married women where the wage earning partner draws up a legal deed of covenant transferring half of his or her income to the incomeless partner; the current net benefit accruing to a couple with an income of £5,000, £10,000 and £15,000 so divided in future; and the net estimated cost to the Exchequer if all such married persons take out such covenants.
Written Answers. - Taxation of Married Women Decision.
454.
The Supreme Court held that sections 192 to 198, inclusive, of the Income Tax Act, 1967, are repugnant to the Constitution in so far as these sections provide for the aggregation of the earned incomes of married couples. Income received under a Deed of Covenant constitutes unearned income and on that basis there would be no tax benefit to a married couple from the covenanting by a wage earning partner of part of his income to the partner with no income in the manner described by the Deputy.