Vol. 480 No. 2
155 Mr. Deasy asked the Minister for Finance if he will correct the anomaly whereby couples living together as a family unit are excluded from obtaining full tax allowances in spite of the fact that for social welfare purposes, either partner's income can be used for assessment; and if he will make a statement on the matter. [13914/97]
While the social welfare treatment of married and cohabiting couples is primarily a matter for the Minister for Social, Community and Family Affairs, in the Hyland case in 1989 the Supreme Court held that it was unconstitutional for the relevant social welfare provisions to treat a married couple living together less favourably than an unmarried cohabiting couple. This judgment has been given effect by treating cohabiting couples in the same way as married couples for social welfare purposes.
In relation to taxation, there are no special income tax allowances for unmarried couples living together. In this context, it should be recognised that tax law follows the general law relating to marriage. The basis on which the married person's tax free allowances 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 conscious of the difficulties which can arise for cohabiting couples in certain circumstances. The Expert Working Group on the Integration of the Tax and Social Welfare Systems looked at, inter alia, the position of cohabiting couples generally. The group's report was published on 27 June 1996.
