Vol. 454 No. 1
74 Mr. E. Byrne asked the Minister for Finance the reason he does not regard the earner in a cohabiting couple arrangement as the provider and therefore refuses to allow the earner to claim the unemployed partner's tax allowances when the Department of Social Welfare insists that the unemployed partner is dependent on the earner and is debarred from assistance due to the fact that the earner's income is counted as part of the unemployed person's means. [10146/95]
While the social welfare treatment of married and cohabiting couples, under social assistance schemes, is primarily a matter for the Minister for Social Welfare, it appears that the Supreme Court held in the Hyland case in 1989 that it was unconstitutional for the relevant social welfare provisions to treat a married couple living together less favourably than an unmarried cohabiting couple. This judgment has been given effect by treating cohabiting couples in the same way as married couples for social welfare purposes.
In relation to taxation, there are no special income tax allowances for unmarried couples living together. In this context, I would point out that tax law follows the general law relating to marriage. The basis on which the marriage person's tax free allowance, and double rate bands, is given derives from the Supreme Court decision in Murphy v. the Attorney General, 1980, which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together.
I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances because of the way they are treated by the tax and social welfare systems, in particular people who are not in a position to enter into legal marriages within the State. An Expert Group on the Integration of the Tax and Social Welfare Systems has been established and this group will, inter alia, be looking at the type of situation outlined above. I will consider the recommendations of the group in due course.
