Dáil Éireann Debate, Thursday - 5 November 2015
109. Deputy Patrick O'Donovan asked the Minister for Finance if a cash refund will be made to a person making a claim under MED 1 expenses, when the person's income is so low that it does not fall into the tax net, so a tax credit is of no use (details supplied); and if he will make a statement on the matter. [38885/15]
View answerSection 469 of the Taxes Consolidation Act 1997 provides for tax relief for an individual in a year of assessment where that individual has incurred relevant health care expenses in that year of assessment. In this context health care expenses includes non-routine dental expenses such as the fitting of braces.
Section 469(2) provides that where an individual qualifies for this relief, the income tax charge for the year of assessment "shall be reduced by the lesser of-
(i) the amount equal to the appropriate percentage of the specified amount [i.e the expenses], and
(ii) the amount which reduces that income tax to nil,
The section, therefore, specifically precludes the making of a refund where the individual concerned had no liability to tax in the year of assessment in which the expenses were incurred.
In the case of health expenses incurred by a person prior to that person's death, any tax relief due in respect of health expenses would normally be claimed by the individuals personal representatives based on any tax paid by the deceased individual prior to their death.
As the claimants in both cases referred to by the Deputy do not appear to have had any income tax liability in the relevant periods the legislation does not provide for any repayment of tax.
