Breeda Moynihan-Cronin
Question:195 Mrs. B. Moynihan-Cronin asked the Minister for Finance the plans he has to exempt income for carer's allowance from income tax; and if he will make a statement on the matter. [21606/00]
Written Answers. - Tax Allowances.
I assume the Deputy is referring to the taxation of the carer's allowance issued by the Department of Social, Community and Family Affairs.
It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments, including the carer's allowance, are reckonable as income for tax purposes. Treating such payments as income for tax purposes is essentially a matter of equity.
The extent to which taxation actually arises in a given case depends, of course, on the amount of other income that the social welfare recipient or the recipient's spouse has in the particular tax year. If there is no other income in addition to the carer's allowance, the existing exemption limits and allowances can be expected to ensure that there is no tax to be paid on the carer's allowance itself.