Dáil Éireann debate -
Wednesday, 24 Jun 1992

Vol. 421 No. 5

Written Answers. - Taxation Matters.

Ruairí Quinn

Question:

98 Mr. Quinn asked the Minister for Finance if his attention has been drawn to the fact that a husband has to make a written request for the family tax free allowance to be signed to his wife if he is not working; whether he has any proposals to change the regulations and the law in relation to this matter in the second Finance Bill in the autumn in view of the fact that the present system is unfair and demeaning to women; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Married couples have a choice as to how their tax affairs are dealt with. Under the aggregation system favoured by the majority of married couples, the husband assumes responsibility for the couple's tax liability. It is under this system that the question of a written request for the transfer of allowance arises.

A husband and wife who is unhappy with the aggregation system may opt to have the couple's tax affairs dealt with under an alternative system known as separate assessment.

Under the separate assessment system, each spouse takes responsibility for his or her own tax affairs, and receives separate tax free allowances. The system is designed to ensure that the tax liability of the couple does not exceed that which would apply under the aggregation system. A spouse is, therefore, entitled to the benefit of any allowances unused by the other spouse. Strictly speaking the amount of allowances available for transfer can be determined only at the end of the tax year. However, I understand that, when it is possible to anticipate the end-of-year position fairly accurately, the Revenue Commissioners will arrange for the transfer of allowances at the start or during the year. This would apply, for example, where it is clear before the year begins that one spouse is likely to be unemployed for the full year. In such cases all the allowances can be made available to the working spouse.

The question of written permission for the transfer of the allowances in this instance does not arise as the spouse concerned has a legal entitlement to the benefit of the unused allowances.

I am aware of a certain amount of dissatisfaction with the working of the existing provisions and I have, therefore, asked my Department to examine the issue to see what action, if any, needs to be taken, This review will take account of any views which the Commission on the Status of Women may express on the subject. It is unlikely that the review will be completed in time for the proposed autumn Bill; in any event, the main function of this Bill is to put in place legislative provisions that are needed by 1 January next.

Gerry O'Sullivan

Question:

99 Mr. G. O'Sullivan asked the Minister for Finance the reason a person (details supplied) in County Cork cannot obtain a C2 certificate from the Revenue Commissioners, taking into consideration the fact that this person will be taking people off the live register to commence business.

Minister for Finance (Mr. B. Ahern)

I have been advised by the Revenue Commissioners that an application for a certificate of authorisation was made in the name of a company owned by the person mentioned in the question. There are a number of statutory conditions which must be fulfilled before the company would qualify for a certificate of authorisation. The company has failed to provide adequate evidence of contracts which would satisfy the inspector that it was about to commence business as a sub-contractor. The inspector was not satisfied that the company would operate from a fixed place of business with adequate equipment and stock necessary for the type of business concerned.

The company has the option to appeal this decision and have their case heard before the appeal commissioners.