Anne Rabbitte
Ceist:145. Deputy Anne Rabbitte asked the Minister for Finance if a case (details supplied) will be reviewed on the basis of equality; and if he will make a statement on the matter. [8389/18]
Amharc ar fhreagraTuesday, 20 February 2018
Ceisteanna (145)
Freagraí scríofa
I am advised by Revenue that the individual concerned is in receipt of the State Pension (Contributory). His wife has no separate source of income and is wholly maintained by him. She is, therefore, a “qualified adult” within the meaning of the Social Welfare Consolidation Act 2005. The individual is therefore entitled to an increase in respect of the qualified adult dependent.
Pursuant to section 19 of the Taxes Consolidation Act 1997, the State Pension (Contributory), including an increase for the qualifying adult dependent, is chargeable to income tax. Disagreement arose between the individual referred to by the Deputy and Revenue on the issue of who, for the purpose of the Taxes Acts, is chargeable to tax on the amount of the increase in respect of the qualifying adult dependent. The individual in this case contended that the qualified adult dependent should be taxed separately on the “increase” whereas Revenue contends that there is only one social welfare pension, given that the Social Welfare Act provides for an increase in the individuals pension and does not therefore provide for a separate pension for the adult dependent. As a consequence the Revenue position is that the individual is chargeable on the full amount of the pension including any increase.
The individual in question appealed the matter and an Appeal Commissioner found in his favour. Once an appeal has been determined by an Appeal Commissioner, either the taxpayer or Revenue may express “dissatisfaction” with the decision as being in error on a point of law and require the Appeal Commissioner to state and sign a case for the opinion of the High Court on the determination of the appeal. I understand that Revenue has expressed dissatisfaction in this case and that a Case Stated has been submitted to the High Court.
I am further advised by Revenue that in accordance with its customer service charter it administers the law fairly, reasonably and consistently and seeks to collect no more than the amount of tax due. Furthermore it is committed to the principle of treating all taxpayers equally. In this regard, Revenue also advises that any decision to pursue an appeal case to the courts following a determination by an Appeal Commissioner is only taken after a comprehensive analysis of the issues involved and consideration of the precedential nature of the point of law in question. It is Revenue’s duty to seek to bring certainty to important points of tax law and this necessitates bringing cases to the High Court where it is of the view that a decision of an Appeal Commissioner is in error.