Vol. 498 No. 3
120 Mr. N. Ahern asked the Minister for Finance when he will introduce equality into the tax allowances of cohabiting couples in view of the fact that couples where only one partner is working are being discriminated against; when this injustice will end; and if he will make a statement on the matter. [27129/98]
There are no special income tax allowances for unmarried couples living together. In this context I would point out that tax 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 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 tax free allowances and rate bands appropriate to single persons.
I am conscious of the concerns of cohabiting couples. 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. Consideration of tax measures in this area will await the group's report which is expected to be completed early next year.
