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Dáil Éireann díospóireacht -
Tuesday, 6 Oct 1998

Vol. 494 No. 4

Written Answers. - Tax Allowances.

Trevor Sargent

Ceist:

257 Mr. Sargent asked the Minister for Finance the steps, if any, taken by his Department to co-ordinate with the Department of Social, Community and Family Affairs to address the anomalous treatment of cohabiting couples and married couples by each Department; and if he will make a statement on the matter. [18354/98]

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 they would if they were 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.

While the social welfare treatment of married and cohabiting couples is primarily a matter for the Minister for Social, Community and Family Affairs, I should explain 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.

An interdepartmental working group has been set up under the Department of Social, Community and Family Affairs to examine the treatment of married, cohabiting and one parent households under the tax and social welfare codes. This group is due to report later this year. My Department is represented on this group and plays an active role in its discussions.

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