Vol. 504 No. 2
180 Proinsias De Rossa asked the Minister for Finance the plans, if any, he has to recognise cohabiting couples as each other's spouses in view of the fact they are classified as such by the Department of Social, Community and Family Affairs to allow them the same benefits and entitlements as married couples for tax calculation purposes; and if he will make a statement on the matter. [11270/99]
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 of the treatment of married persons for tax purposes derives from the Supreme Court decision in Murphy vs 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. The tax treatment of unmarried couples who cohabit was unaffected by the Murphy judgment. Each partner is taxed as a single person and each is entitled to the tax-free allowances and rate bands appropriate to single persons.
While the social welfare treatment of married and cohabiting couples is primarily a matter for the Minister for Social, Community and Family Affairs, I should explain that in the Hyland case in 1989, the Supreme Court held 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.
