Dáil Éireann Debate, Tuesday - 27 November 2018
169. Deputy Brendan Ryan asked the Minister for Finance if the Revenue Commissioners will re-examine the tax calculation for a person (details supplied) and have it re-assessed in view of the fact that their spouse receives a pension separately and not as a qualified adult with reference to supporting documentation; if this will be amended as soon as possible; and if he will make a statement on the matter. [49250/18]
Amharc ar fhreagraI am advised by Revenue that the person in question receives a Contributory State pension, which includes an additional amount in respect of a Qualifying Adult Dependant.
Although the Qualifying Adult portion of the pension is paid directly to the person’s spouse/civil partner/co-habitant, the payment is premised on there being an entitlement to the pension in the first instance. In this regard, Section 112 of the Social Welfare Consolidation 2005 Act specifies that the Qualifying Adult portion of a pension is an ‘increase’ that is payable in respect of a spouse/civil partner/co-habitant who is being financially maintained and whose income is not greater than a specified amount.
The taxation position of the Qualifying Adult portion is set out in Section 126(2B) of the Taxes Consolidation Act 1997, which provides that any ‘increase’ is treated as if it arises to and is payable to the person who qualifies for the pension (the beneficiary). As a consequence, the income is treated as income of the beneficiary and not the Qualifying Adult and there is no entitlement to any additional Employee Tax Credit nor an increase in the Standard Rate Band.
For these reasons the person in question is correctly assessed for tax and there is no further credits due to the person.
