Vol. 437 No. 2
42 Mr. Penrose asked the Minister for Finance the taxation position in respect of maintenance payments paid by a former spouse in respect of children where such payments are paid in compliance with a separation agreement; if the paying spouse is allowed any income tax relief in respect of same; and if he will make a statement on the matter.
I have been advised by the Revenue Commissioners that where specified amounts are paid or directed to be paid for the benefit of children that: (a) the person making the payments will not be entitled to deduct and retain income tax from the payments; (b) the payments will not be regarded for income tax purposes as the income of the child; (c) the total income for tax purposes of the person making the payment will be computed as if the payment had not been made.
The effect of these provisions is that the payments are treated in the same way as if the payer were providing for the child out of his/her own after-tax income. This is in line with the tax treatment of all other parents. In the circumstances, I have no plans to alter the existing tax treatment of the payments.
