Tuesday, 17 July 2012

Questions (95)

Aengus Ó Snodaigh

Question:

99 Deputy Aengus Ó Snodaigh asked the Minister for Finance the value of the revenue forgone to the State as a result of the tax relief on income protection insurance premiums each year for the past five years. [34650/12]

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Written answers (Question to Minister for Finance)

The position is that income tax relief for contributions paid to permanent health benefit schemes is allowable in accordance with section 471 of the Taxes Consolidated Act 1997. This section provides relief for premiums paid to a permanent health benefit scheme approved by the Revenue Commissioners, which provides for periodic payments to an individual in the event of loss or diminution of income due to ill health. The relief is confined to an amount not exceeding 10% of the individual's total income for any tax year. Information on the cost to the Exchequer and the numbers of claimants availing of the relief in respect of the permanent health benefit schemes is available for the income tax years 2005 to 2009 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table:

Year Ended 31st December as specified

Estimated Cost of Tax Relief €m

31/12/2005

3.2

31/12/2006

3.1

31/12/2007

3.6

31/12/2008

4.0

31/12/2009

3.9

Part of the cost of contributions to permanent health benefit schemes is not identifiable as a result of the move to a "net pay" basis for contributions by PAYE taxpayers from 6 April, 2001.