Tuesday, 12 March 2013

Questions (196)

Peter Mathews

Question:

196. Deputy Peter Mathews asked the Minister for Finance his views on correspondence (details suplied) regarding tax relief on nursing home fees; and if he will make a statement on the matter. [13107/13]

View answer

Written answers (Question to Finance)

Section 469 of the Taxes Consolidation Act 1997 provides for tax relief at the taxpayers marginal rate (20 or 41%) for expenses incurred in relation to nursing home fees. However, tax relief can only be claimed when an individual has a tax liability in the same tax year as the expenses were incurred. I am informed by the Revenue Commissioners that for the tax year 2011, any tax that was paid by the individual in question was refunded. As the individual concerned has not submitted a P60 for 2012, it is not possible to say if any refund will be due.

While I appreciate the position of the individual in question, to amend one section of the Taxes Consolidation Act 1997 in order to provide tax relief for current expenditure against tax that was paid in previous years would inevitably lead to calls for all tax reliefs to be similarly refundable based on taxes paid in any year. This would place an undue burden on the Exchequer and would be extremely difficult for the Revenue Commissioners to administer.