Dáil Éireann debate -
Thursday, 23 Jun 1994

Vol. 444 No. 3

Written Answers. - Medical Expenses Relief.

Ivan Yates

Question:

62 Mr. Yates asked the Minister for Finance the reason taxpayers are not able to obtain a refund of medical expenses where they receive marginal relief tax exemptions; his views on whether it is fair that someone could be refused medical expenses relief with an income of £8,500 where someone with an income of £100,000 can get this relief; and if he will review the operation of this medical expenses refund scheme.

Minister for Finance (Mr. B. Ahern)

Under the normal tax system a person is entitled to the personal allowances and reliefs whereas under the marginal relief system a person is entitled to the exemption limits, which are substantially higher than the basic allowances available under the standard system, and also to the child additions. The marginal relief tax system is designed to ensure that, where it applies, it is more favourable to the individual taxpayer than taxation under the normal tax system and it would not be appropriate to allow for reliefs such as medical expenses under the marginal relief system.

The Revenue Commissioners, when appraising a particular case, take into account all the relevant factors which influence the tax liability of that taxpayer including non-reimbursable medical expenses. It should be stressed that in a case where a person's medical expenses are sufficiently large to make it more beneficial for them to be assessed to tax at the standard rate rather than at the marginal relief rate of tax the Revenue Commissioners will automatically place that taxpayer on the standard rate.