Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I welcome amendments Nos. 81 and 82. It was essential for the Minister to make it explicit that the change he is proposing does not apply in the cases he has outlined. I indicated that I opposed the section to ensure we would have a debate on this issue. There was some controversy over the proposal. The Revenue Commissioners clarified matters, as I understand it. Some suggestions were made by taxation advisers that the change would allow the Revenue Commissioners to tax normal board and lodgings that parents provide for family members. The Revenue Commissioners have clarified that is absolutely not the case.

The original legislation was certainly open to abuse. It is good that the loophole is being closed off. There seems to be some confusion but it should be clarified that the small gift exemption of €3,000 per annum is completely separate. It is a different issue entirely. I take it in good faith that there have been examples of abuses. The original wording was open to abuse.