Vol. 492 No. 6
108 Mr. Ring asked the Minister for Finance the plans, if any, he has to introduce a tax free allowance, similar to a married allowance, for couples who are in a common law marriage in view of the fact the system of awarding joint allowances discriminates against those who choose not to marry. [14724/98]
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 of the treatment of married persons for tax purposes 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. The tax treatment of unmarried couples who cohabit was unaffected by the Murphy judgment. Each partner is taxed as a single person and each is entitled to the tax free allowances and rate bands appropriate to single persons. I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances. An interdepartmental working group has been set up under the Department of Social, Community and Family Affairs to examine the treatment of married, co-habiting and one parent households under the tax and social welfare codes. This group is due to report later this year.
