Vol. 562 No. 4
209 Mr. Durkan asked the Minister for Finance the position in relation to the extent to which carer's allowance is taxable in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [6516/03]
The carer's allowance paid by the Department of Community and Family Affairs to the taxpayer's wife is taxable under Schedule E in accordance with the provisions of sections 19 and 112 of the Taxes Consolidation Act, 1997.
I am informed by the Revenue Commissioners that the carer's allowance received by the taxpayer's wife was returned as income for the tax years 1995-96 to 2001. Income tax assessments for those years were issued in accordance with the returns. In a letter dated 3 February 2003, the taxpayer's agent requested the inspector of taxes to amend the assessments to exclude the carer's allowance "if the carer's allowance is not a taxable source of income". However, as already stated, the position is that the carer's allowance is taxable and, while the inspector is prepared to amend assessments to show the carer's allowance received was a social welfare payment rather than an emolument, this will not affect the couple's tax liability for the years in question.
