Dáil Éireann debate -
Tuesday, 30 May 2000

Vol. 520 No. 1

Written Answers. - Tax Allowances.

Thomas P. Broughan

Question:

170 Mr. Broughan asked the Minister for Finance if he will address the case of a person (details supplied) in County Tipperary who is in receipt of disability benefit but was not considered eligible for supplementary welfare benefit, mortgage interest supplements and medical card as a result of his co-habiting partner's means, while at the same time his partner is treated as a single person for tax purposes and is not able to benefit in the way that married couples can under the tax code. [15162/00]

Minister for Finance (Mr. McCreevy)

The income tax code recognises marital status and provides that a married couple can opt for joint, separate or single assessment. However, in the case of cohabiting couples, each partner is taxed as a single person and each is entitled to the tax-free allowances and rate bands appropriate to single persons. Consequently, as each partner is a separate entity for tax purposes, allowances cannot be transferred from one partner to the other.

The widening of the standard rate band in Budget 2000, takes the first step in putting in place individual tax bands so that taxpayers will, in general, be taxed on what they earn as individuals rather than on their marital status as we have now.

As for the question regarding social welfare payments, this is a matter for my colleague the Minister for Social, Community and Family Affairs and will be dealt with by the Minister in his response to Parliamentary Question No. 296.