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Dáil Éireann díospóireacht -
Tuesday, 24 Oct 1989

Vol. 392 No. 1

Written Answers. - Taxing of Maintenance Payments.

81.

asked the Minister for Finance the reason a person (details supplied) in County Louth is being taxed on the £65 per week which she receives from her husband to maintain her; if his attention has been drawn to the fact that her husband is employed at Our Lady of Lourdes Hospital, Drogheda, County Louth, and pays PAYE on his gross earnings; the reason a married unemployed housewife may be taxed on her housekeeping income; and if he will make a statement on the matter.

The Revenue Commissioners have advised me that the provisions of section 3 of the Finance Act, 1983, apply to payments under maintenance arrangements made on or after 8 June 1983. Under such an arrangement a husband pays maintenance to his wife in full without deduction of tax. He is allowed a deduction for this amount in computing his total income for tax purposes so that in effect the maintenance payments are no longer his income for tax purposes. The corollary of this is that they become the wife's income for tax purposes and the tax allowances of the wife may be set against them.

The maintenance arrangement in the taxpayer's case comes within the terms of section 3 and accordingly she is properly chargeable to tax in respect of such maintenance payments.

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