Dáil Éireann debate -
Thursday, 8 Feb 1996

Vol. 461 No. 3

Written Answers. - Community Employment Scheme.

Mary O'Rourke

Question:

55 Mrs. O'Rourke asked the Minister for Finance the reason his Department refuses to give financial recognition in tax terms to a person (details supplied) in County Westmeath who is obtaining paid recognition for his family from the Department of Enterprise and Employment via the Community Employment Scheme. [2836/96]

Minister for Finance (Mr. Quinn)

I have been advised by the Revenue Commissioners that since the taxpayer is not married to his partner he is not entitled to the married allowance.

As the Deputy will be aware, 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 married 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. The Expert Group on the Integration of the Tax and Social Welfare Systems has been looking at,inter alia, the position of cohabiting couples generally. The group is expected to report shortly and I will carefully consider its recommendations.