Dáil Éireann Debate, Thursday - 19 November 2009
67 Deputy James Reilly asked the Minister for Finance the details of the tax relief for nursing home expenses; the number of persons benefiting from tax relief for nursing home expenses; the number benefiting for each of the past ten years for which most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42445/09]
Amharc ar fhreagraThe position is that income tax relief is available in respect of nursing home fees under the heading of health expenses, in accordance with section 469 of the Taxes Consolidated Act 1997. From 1 January 2007, relief is available for expenditure incurred on health expenses by an individual in respect of him/herself or on behalf of any other individual. For all years up to and including 2006, relief was only available for health expenses incurred in respect of him/herself, a relative or an individual aged 65 years (or over) or who is permanently incapacitated by reason of mental or physical infirmity. The relief is available at the individual's marginal rate of tax in respect of nursing home expenses. The nursing home must be entered on the Revenue approved list of hospitals which is available on the Revenue website at http://www.revenue.ie/
I am informed by the Revenue Commissioners that data on claims for tax relief for nursing home expenses are not captured in such a way as to provide a dedicated basis for compiling estimates of cost to the Exchequer and numbers availing of the relief. Claims for this relief are aggregated in Revenue records with other health expenses claims. Accordingly, the specific information requested is not readily available and could not be obtained without conducting a protracted investigation of the Revenue Commissioners' records. However, information on the cost to the Exchequer and the numbers of claimants availing of health expenses tax relief generally is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available.
68 Deputy James Reilly asked the Minister for Finance the details of the permanent health benefits scheme; the number of persons benefiting from this for each of the past ten years for which most recent information is available; the cost per annum; and if he will make a statement on the matter. [42446/09]
Amharc ar fhreagraThe position is that income tax relief for contributions paid to permanent health benefit schemes is allowable in accordance with section 471 of the Taxes Consolidated Act 1997.This section provides relief for premiums paid to a permanent health benefit schemeapproved by the Revenue Commissioners which provides for periodic payments to an individual in the event of loss or diminution of income due to ill health. The relief is confined to an amount not exceeding 10% of the individual’s total income for any tax year. Information on the cost to the Exchequer and the numbers of claimants availing of the relief in respect of the permanent health benefit schemes is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table:
|
Year Ended 5th April or 31st December as specified |
Numbers of Claimants |
Estimated Cost of Tax Relief |
|
€m |
||
|
05/04/1998 |
N/A |
3.4 |
|
05/04/1999 |
63,000 |
3.5 |
|
05/04/2000 |
65,100 |
3.8 |
|
05/04/2001 |
64,900 |
3.7 |
|
31/12/2001 |
22,900 |
1.5 |
|
31/12/2002 |
20,000 |
1.7 |
|
31/12/2003 |
20,300 |
2.0 |
|
31/12/2004 |
21,300 |
2.5 |
|
31/12/2005 |
21,600 |
3.2 |
|
31/12/2006 |
23,000 |
3.1 |
Relief for Contributions to Permanent Health Benefit Schemes
Part of the cost of contributions to permanent health benefit schemes, and the associated numbers of claimants, is not identifiable as a result of the move to a "net pay" basis for contributions by PAYE taxpayers from 6 April, 2001.
The numbers availing represent income earners who were in a position to absorb at least some of the tax relief and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax relief's were sufficient to reduce their liability to tax to nil without reference to the specific relief. The numbers availing are rounded to the nearest hundred, as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
69 Deputy James Reilly asked the Minister for Finance the details of the tax relief for long-term care introduced in 2001; the eligibility criteria for same; the number of persons that have benefited from the relief since its introduction; the cost per annum for same; and if he will make a statement on the matter. [42447/09]
Amharc ar fhreagraThe position is that section 470A of the Taxes Consolidation Act 1997 provides for tax relief, similar to that currently available for medical insurance, in respect of premiums on qualifying insurance policies designed to provide cover, in whole or in part, for future care needs of individuals who are unable to perform at least two activities of daily living or are suffering from severe cognitive impairment. The tax relief is available at the standard rate and will be given under a relief at source system, that is, the subscriber will be able to deduct the relief from the gross premium due. The amount deducted will be refunded by the Revenue Commissioners to the insurer. Benefits payable under a qualifying policy will not be taxable. Qualifying policies, which must be approved by the Revenue Commissioners, may be taken out by an individual in relation to him/herself, his or her spouse and children, and other relatives. No claims have been submitted to the Revenue Commissioners for relief under this section.
70 Deputy James Reilly asked the Minister for Finance the details of the incapacitated child tax credit; the value of the tax credit; the number of persons that have benefited from the credit for each of the past ten years for which the most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42448/09]
Amharc ar fhreagraThe position is that section 465 of the Taxes Consolidation Act 1997 provides for a tax credit of €3,660 for the tax year 2009 where the claimant has living with him or her any child who, at any time during the relevant tax year to which the claim refers—
(a) is under the age of 18 years and is permanently incapacitated by reason of mental or physical infirmity, or
(b) if over the age of 18 years at the commencement of the year, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself.
If the child is aged 21 or over, the incapacity must have arisen before the child became 21 or while the child was in receipt of full time instruction at any university, college, school or other educational establishment.
The tax credit can also be claimed in respect of—
a step-child;
a formally adopted child;
an informally adopted child or any child in respect of whom the claimant has custody,
who meets the criteria set out above and who is maintained at the claimant's own expense. Where more than one child is permanently incapacitated, a tax credit may be claimed in respect of each such child. Information on the cost to the Exchequer and the numbers of claimants availing of the incapacitated child tax credit relief is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table.
|
Year Ended 5th April or 31st December as specified |
Number of Claimants |
Estimated Cost |
|
€m |
||
|
05/04/1998 |
N/A |
3 |
|
05/04/1999 |
9,400 |
3 |
|
05/04/2000 |
9,600 |
4 |
|
05/04/2001 |
9,100 |
4 |
|
31/12/2001 |
8,800 |
3 |
|
31/12/2002 |
8,800 |
4 |
|
31/12/2003 |
9,000 |
5 |
|
31/12/2004 |
9,800 |
5 |
|
31/12/2005 |
10,400 |
10 |
|
31/12/2006 |
11,000 |
16 |
The numbers availing of the credit represent income earners who were in a position to absorb at least some of the incapacitated child tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil. The numbers availing are rounded to the nearest hundred and the costs are rounded to the nearest million, as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
71 Deputy James Reilly asked the Minister for Finance the details of the allowance for employing a carer; the value of the allowance; the number of persons that have benefited from the allowance for each of the past ten years for which the most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42449/09]
Amharc ar fhreagraSection 467 of the Taxes Consolidation Act 1997, provides for a tax deduction at an individual's highest rate of tax in respect of the costs incurred by that individual of employing another person (including a person whose services are provided by or through an agency) to take care of him/herself, a spouse or a relative who, throughout the relevant tax year, is totally incapacitated by reason of physical or mental infirmity. The maximum amount allowable for tax relief is €50,000 for 2006 and subsequent tax years (€30,000 for previous tax years) or, if lower, the actual amount expended in the relevant tax year in employing the person.
An important point to note about this tax relief is that the person incurring the cost of the care, employs the carer. The tax relief does not apply where the carer is in business on his/her own account as a self-employed person. Information on the cost to the Exchequer and the numbers of claimants availing of the relief for employing a carer is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table.
|
Year ended 5 April or 31 December (as specified) |
Numbers of Claimants |
Estimated Cost of Tax Relief |
|
€m |
||
|
05/04/1998 |
N/A |
0.4 |
|
05/04/1999 |
400 |
0.4 |
|
05/04/2000 |
400 |
0.5 |
|
05/04/2001 |
500 |
0.8 |
|
31/12/2001 |
500 |
0.4 |
|
31/12/2002 |
600 |
0.6 |
|
31/12/2003 |
1,000 |
0.9 |
|
31/12/2004 |
900 |
1.3 |
|
31/12/2005 |
700 |
1.8 |
|
31/12/2006 |
800 |
2.8 |
The numbers availing represent income earners who were in a position to absorb at least some of the tax relief and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax reliefs were sufficient to reduce their liability to tax to nil without reference to the specific relief. The numbers availing are rounded to the nearest hundred as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
72 Deputy James Reilly asked the Minister for Finance the details of the dependent relative tax credit; the number of persons who have benefited from the credit for each of the past ten years for which the most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42450/09]
Amharc ar fhreagraThe position is that section 466 of the Taxes Consolidation Act 1997 enables an individual to claim the dependent relative tax credit, currently €80 for a tax year if, in that tax year, the claimant maintains at his/her own expense:
(a) a relative of the claimant or of the claimant's spouse, who is incapacitated by old age or infirmity from maintaining himself/herself; or
(b) the widowed father (or the widowed mother) of the claimant or of the claimants spouse, whether incapacitated or not, or
(c) a son or daughter of the claimant living with the claimant on whose services the claimant, by reason of old age or infirmity, has to depend.
Entitlement to this tax credit is conditional on the individual, in respect of whom the dependant relative tax credit is being claimed, not having total income from all sources for the relevant tax year in excess of a sum equal to the specified amount. The specified amount means an amount which does not exceed by more than €280 the maximum contributory State pension to which an individual, not necessarily the dependent relative, would be entitled if s/he were over 80 years, had no dependants, lived alone and was ordinarily resident on an island.
Where two or more individuals jointly maintain a dependent relative, the tax credit is divided between such individuals in proportion to the amounts or value of their respective contributions towards the maintenance of that individual. Information on the cost to the Exchequer and the numbers of claimants availing of the dependent relative tax credit relief is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table.
|
Year Ended 5th April or 31st December as specified |
Numbers of Claimants |
Estimated Cost of Tax Credit |
|
€m |
||
|
05/04/1998 |
22,100 |
1.1 |
|
05/04/1999 |
21,000 |
1.1 |
|
05/04/2000 |
20,200 |
1.1 |
|
05/04/2001 |
17,800 |
1.2 |
|
31/12/2001 |
17,800 |
0.8 |
|
31/12/2002 |
16,600 |
1.1 |
|
31/12/2003 |
16,000 |
1.1 |
|
31/12/2004 |
15,700 |
1.05 |
|
31/12/2005 |
15,200 |
1.02 |
|
31/12/2006 |
15,500 |
1.4 |
The numbers availing of the credit represent income earners who were in a position to absorb at least some of the dependent relative tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil. The numbers availing are rounded to the nearest hundred, as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
73 Deputy James Reilly asked the Minister for Finance the details of the blind person’s tax credit; the value of the credit; the number of persons that have benefited from the credit for each of the past ten years for which the most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42451/09]
Amharc ar fhreagraThe position is that, under the provisions of section 468 of the Taxes Consolidated Act 1997, an individual is entitled to the blind person's tax credit for a tax year during which he or she is blind. An individual may also claim a similar tax credit in respect of his or her spouse where the spouse is blind and the couple is jointly assessed to income tax for the relevant tax year in respect of which the blind person's tax credit is due. The blind person's tax credit is currently €1,830 per annum. Where a husband and wife are both blind and are jointly assessed the tax credit is €3,660 per annum.
A "blind person" is a person whose central visual acuity does not exceed 6/60 in the better eye with correcting lenses, or whose central visual acuity exceeds 6/60 in the better eye or in both eyes but is accompanied by a limitation in the fields of vision that is such that the widest diameter of the visual field subtends an angle no greater than 20 degrees. Information on the cost to the Exchequer and the numbers of claimants availing of the blind person's tax credit is available for the income tax years 1998 to 2006 inclusive, the most recent year for which final data is available. The relevant figures are shown in the following table:
|
Year Ended 5th April or 31st December as specified |
Numbers of Claimants |
Estimated Cost of Tax Credit |
|
€m |
||
|
05/04/1998 |
900 |
0.3 |
|
05/04/1999 |
1,000 |
0.5 |
|
05/04/2000 |
1,100 |
0.7 |
|
05/04/2001 |
1,000 |
0.8 |
|
31/12/2001 |
900 |
0.5 |
|
31/12/2002 |
850 |
0.7 |
|
31/12/2003 |
850 |
0.7 |
|
31/12/2004 |
800 |
0.7 |
|
31/12/2005 |
900 |
0.8 |
|
31/12/2006 |
900 |
1.2 |
The numbers availing of the credit represent income earners who were in a position to absorb at least some of the tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil. The numbers availing are rounded to the nearest fifty, as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
74 Deputy James Reilly asked the Minister for Finance the details of the tax concessions for disabled drivers and disabled passengers; the number of persons that have benefited from the credit for each of the past ten years for which the most recent information is available; the cost per annum for same; and if he will make a statement on the matter. [42452/09]
Amharc ar fhreagraThe tax concessions available under the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme for a qualifying person are as follows.
For a disabled driver, the relief (from VRT and VAT) is a maximum of €9,525, with excise relief on up to 600 gallons (2728 litres) of fuel per annum.
For a disabled passenger the relief (from VRT and VAT) is a maximum of €15,875, with excise relief on up to 600 gallons (2728 litres) of fuel per annum.
Organisations looking after the disabled are entitled to a relief of €15,875 per vehicle and excise relief on up to 900 gallons (4092 litres) of fuel per annum.
Vehicles coming under the scheme are also exempt from annual road tax.
In the year of purchase of a car a claimant receives benefits relating to the purchase of the car, fuel relief and road tax, in other years the benefits received are in respect of fuel and road tax. The number of claims for VRT relief under the scheme, and the cost of the tax concessions (VRT, VAT and excise on fuel) for the past ten years, is set out in the following table. The cost of the exemption from annual road tax is not readily available but it is estimated to have been around €8 million in 2008, bringing the overall cost of the scheme in that year to around €76 million.
|
Year |
Number of claims for VRT relief on the purchase of vehicles(a) |
Costs of VRT, VAT and relief from excise duty on fuel |
|
€m |
||
|
1999 |
2,615 |
22.0 |
|
2000 |
3,399 |
27.0 |
|
2001 |
3,420 |
30.5 |
|
2002 |
3,806 |
34.7 |
|
2003 |
3,720 |
36.0 |
|
2004 |
4,447 |
45.1 |
|
2005 |
4,773 |
49.5 |
|
2006 |
3,612 |
59.3 |
|
2007 |
6,127 |
64.4 |
|
2008 |
6,405 |
68.3 |
(a)It is estimated that the number of people in the scheme is around 2.1 times the annual number of VRT claimants.
