Vol. 433 No. 1
124 Mr. R. Bruton asked the Minister for Finance if sums paid under a covenant are liable to health, youth and special income levies in the hands of the receiver, even though such levies have already been collected from the covenanter; whether there has been any legal challenge to the collection of levies from covenants; and if he will make a statement on the matter.
I have been advised by the Revenue Commissioners that the legislation that imposes the health contributions and levies has no special provisions relating to covenanted income. Therefore, income which has been subject to these charges and which is transferred to another person under a deed of covenant will also be liable to the charges in the hands of the covenantee provided the charging conditions are satisfied.
There has been no legal challenge to the collection of the health contributions or levies from covenanted income.
The health contributions and levies would not be chargeable where the convenantee holds a means tested medical card. The income levy would not apply unless the covenantee's income is £9,000 or more.
