Vol. 455 No. 4
44 Mr. Gregory asked the Minister for Finance if the income of a family (details supplied) in Dublin 10 can be taxed at a family rate in view of the reduction in income from unemployment assistance from £165 to £149 as the earner is now on a community employment scheme. [12299/95]
The position in relation to cohabiting unmarried couples is that there are no special income tax allowances for unmarried couples living together. In this context, I would point out that tax law follows the general law relating to marriage. The basis on which the married person's tax free allowance, and double rate bands, is given derives from the Supreme Court decision in Murphy v. the Attorney General, 1980, which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together.
I am informed by the Revenue Commissioners that the taxpayer is being correctly assessed to tax as a single person and is in receipt of all the tax-free allowances to which he is entitled, based on the most recent information available to them.
I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances, in particular those who are not in a position to enter into legal marriages within the State. An Expert Group on the Integration of the Tax and Social Welfare Systems has been established and this group will, inter alia, be looking at the treatment of cohabiting couples. I will consider the recommendations of the group in this area carefully.
