Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I move amendment No. 110:

In page 88, to delete lines 11 to 37, and in page 89, to delete lines 1 to 9 and substitute the
following:
“ “Magdalen Laundry Payments205A. (1) In this section—
‘relevant individual’ means an individual to whom a relevant payment has been made;
‘relevant payment’ means a payment or payments made, directly or indirectly, to a relevant individual by or on behalf of the Minister for Justice, Equality and Defence, in accordance with the Table of Payments set out in Appendix A to the Magdalen Commission Report dated May 2013 on the establishment of an ex gratia scheme and related matters for the benefit of those women who were admitted to and worked in the Magdalen Laundries.
(2) This section applies to the following payments:

(a) a relevant payment;
(b) an amount equal to the State Pension (Contributory) as set out in column 2 of Part 1 of Schedule 2 of the Social Welfare Consolidation Act 2005 to a relevant individual;
(c) an amount equal to the State Pension (Non-Contributory) as set out in Part 3 of the Social Welfare Consolidation Act 2005 to a relevant individual;
(d) any payment, other than a payment referred to in paragraphs (a) to (c), made, directly or indirectly, by or on behalf of the Minister for Social Protection to a relevant individual, by virtue of that individual being a relevant individual.

(3) For the purposes of the Income Tax Acts, and notwithstanding any provision of those Acts to the contrary, a payment to which this section
applies, made to a relevant individual, shall be disregarded.”,
and(b) in section 613(1)—

(i) in paragraph (c) by substituting “profession;” for “profession.”, and
(ii) by inserting the following paragraph after paragraph (c):

“(d) any payment to which section 205A applies.”.”.

Section 73, as introduced, provides for an exemption from tax for ex gratia payments made to beneficiaries by the Minister for Justice, Equality and Defence, pursuant to the Magdalen Commission report in respect of women who were admitted to and worked in Magdalen laundries, which are institutions referred to in the Quirke report. The payments, when made, will not be subject to income tax and, as a consequence, the universal social charge will not apply. In addition, the payments will not attract a charge to capital gains tax or be treated as a gift or inheritance for the purposes of capital acquisitions tax. I am amending this section to also include a tax exemption for certain payments made to Magdalen awardees by the Department of Social Protection. This amendment will provide for the recommendation in the Quirke report that women under 66 should receive €100 per week, tax free and that women over 66 should receive €230.30 per week, tax free. I am also amending this section to provide that the section will apply in respect of any payment made on or after 1 August 2013. I commend these amendments to the select sub-committee.