Tuesday, 27 January 2004

Questions (214)

Willie Penrose

Question:

330 Mr. Penrose asked the Minister for Finance his views on the way in which the Revenue Commissioners treat unemployability supplement, in relation to the taxation code, in particular the way in which they deal with the element of unemployability supplement which relates to child dependants; and if he will make a statement on the matter. [1752/04]

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Written answers (Question to Minister for Finance)

Unemployability supplement is an addition to disablement pension where a person is considered to be incapable of work as a result of an occupational accident or disease. The disablement pension is chargeable to tax, under schedule E of the income tax code, including any increases in respect of unemployability and child dependents.

Any increases of unemployability supplement payable in respect of child dependents are treated for tax purposes in accordance with the 1998 Supreme Court judgement in the case of Ó Síocháinv Neenan. In that case, the Supreme Court held that the widow's pension paid by the Department of Social and Family Affairs, including the additional amount for children, was the beneficial entitlement of the widow and that she was assessable to tax on the full amount.