Dáil Éireann díospóireacht -
Tuesday, 5 Mar 1996

Vol. 462 No. 5

Written Answers. - Tax Relief on Dental and Medical Treatment.

Michael McDowell

Ceist:

75 Mr. M. McDowell asked the Minister for Finance if his attention has been drawn to the representations from medical and dental professional bodies concerning their anxieties about the fact of section 12 of the Finance Act, 1967, which allows for tax relief on medical and dental treatment outside this State; the safeguards, if any, he has to ensure that expenditure relief under the act from Irish income tax is fully taxed in the hands of practitioners in the United Kingdom; whether there is reciprocity between this State and the United Kingdom in relation to this tax relief; the evaluation, if any, that has been carried out on the effect of this section on the provision of complex medical and dental treatment within this State; and if he will make a statement on the matter. [4817/96]

Minister for Finance (Mr. Quinn)

I have received two general representations in relation to availability of tax relief for dental treatment provided abroad and I understand that the Revenue Commissioners have received a representation in relation to optical treatment by laser surgery.

Section 12 of the Finance Act, 1967, provides for tax relief for certain health expenses even if the treatment was received abroad. I am not aware of any evaluation or study which has been carried out in relation to the impact of section 12 on the provision of complex medical and dental treatment in this State, I would, however, draw to the Deputy's attention that section 12 of the Finance Act, 1967, has been in operation now for many years and has been of benefit to taxpayers in the provision of health care. The section's primary aim is to alleviate the financial expense incurred by taxpayers as a result of non-routine and non-reimbursable health expenditure whether or not the treatment is provided within the State. The measure was not intended as a mechanism for the promotion of domestic providers of services. Furthermore, there may be EU implications if any restrictions were to be applied in relation to where the service is provided.

The Revenue Commissioners are not aware of any relief similar to section 12 being available in the UK and consequently the issue of reciprocity does not arise.

In relation to the taxation of practitioners abroad, including the UK, this is a matter for the relevant jurisdictions and is an area in which this State has no function.