Vol. 560 No. 3
239 Mr. Wall asked the Minister for Finance the position regarding the appeal by a person (details supplied) in County Kildare against the decision to refuse them incapacitated child allowance in respect of their child; and if he will make a statement on the matter. [2801/03]
I am informed by the Revenue Commissioners that the taxpayer's claim for the incapacitated child tax credit – formerly allowance – has been allowed. The taxpayer's initial claim was refused because the inspector was not fully aware of the extent of the child's incapacity. A revised certificate of tax credits, which includes the incapacitated child tax credit of €500, will issue to the taxpayer on 5 February. The inspector has also applied the incapacitated child tax credit or allowance to all years back to 1994-95, the tax year in which the child was born. A refund cheque for €4,215.04 is in the process of being issued.
240 Mr. Wall asked the Minister for Finance the criteria laid down by his Department for incapacitated child allowance; and if he will make a statement on the matter. [2802/03]
The incapacitated child tax credit – formerly allowance – can be claimed by the parent or guardian of a child who is: under 18 years of age and is permanently incapacitated by reason of mental or physical infirmity; a child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if the infirmity is such that if the child were over 18 there would be a reasonable expectation that he or she would be incapacitated from maintaining himself or herself; and if over 18 years of age at the beginning of the year of assessment, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before reaching 21 years of age or becomes permanently incapacitated after reaching the age of 21, but while he or she had been in receipt of full-time instruction at any university, college or other educational establishment or while training for a trade or profession for a period of not less than two years.
The tax credit can also be claimed in respect of a permanently incapacitated step-child, adopted child or informally adopted child who is in the custody of and maintained by the claimant. The incapacity of the child must be such that it permanently prevents the child from being able in the long-term, i.e. when over 18 years of age, to maintain himself or herself independently. If the incapacity can be corrected or relieved by the use of any treatment, device, medication or therapy, for example coeliac disease, diabetes etc., the child is not regarded as being permanently incapacitated.
The amount of the tax credit in the current year is €500. Where a claimant has more than one incapacitated child, a tax credit may be claimed for each child. Claims should be made to the claimant's inspector of taxes and must be accompanied by a doctor's certificate outlining (i) the date the incapacity first arose, (ii) the nature, degree and extent of the incapacity and (iii) whether the incapacity permanently prevents the child from maintaining himself or herself.
