Terence Flanagan
Question:107. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding tax individualisation; and if he will make a statement on the matter. [28046/15]
View answerThursday, 9 July 2015
Questions (107)
Written answers
The system of individualisation has been in the tax code since 1999. It is my view that individualisation has now bedded into the tax system to a degree where it cannot be changed easily, and there are no plans to do so. To complete or to reverse individualisation would cost in the region of €800 million.
The issue of tax individualisation was considered by the Commission on Taxation in 2009 and that body recommended that no change should be made to the current system. It concluded that the current system represents a balance between, on the one hand, acknowledging the choices families make in caring for children and, on the other, taking account of the need to encourage labour market participation.
I would point out that the changes to the income tax system included in Budget 2015 mean that all those who paid Income Tax and / or USC in 2014 will see a reduction in their tax bill for 2015 where incomes are equal. I intend to continue to reduce the tax burden on low and middle income earners in this manner in future budgets, subject to having the required fiscal space.