Joan Burton (Dublin West, Labour) | Oireachtas source

Is the reason for the non-take up of the credit by the people identified by the Minister the fact that their income is so low that they are not in a position to avail of the credit? In that context, given that they must be on a very low income, would it not be sensible to look at a refundable tax credit so that they would get a benefit from it?

Revenue has different practices relating to different issues in personal tax cases. For example, if somebody qualifies for a retirement pension, Revenue will very quickly write to that individual to say that he or she may be liable for income tax in the future. Revenue does that relatively quickly because it has a system in place with the Department of Employment Affairs and Social Protection. In respect of potential benefits and also going back to the earlier comments made by the Minister, the Minister spoke about the Irish income tax system being progressive. I agree with him that it is very progressive. The problem is that in Irish society, like many European societies, we now have an awful lot of people on very low minimum wages. These are the people driving around as Deliveroo drivers. These people are really out working but they do not qualify for very much despite being on very low incomes. I know refundable tax credits have been a difficult issue technically for Revenue but I assume that technology in Revenue has moved on and that it would be possible to provide refundable tax credits, particularly in the case of families at work on very low incomes. I am aware of the supports from the Department of Employment Affairs and Social Protection in terms of the payments to working families but these are also potential payments to families and individuals with children or others qualifying under the home carer's tax credit. It is reasonable to look at the technology to see whether it is possible to pay it to people who qualify and for Revenue to initiate that. It may be very difficult for people on very low incomes to generate a claim or they may be a bit frightened of Revenue and are not proactive in seeking to generate a claim. I would be grateful if the Minister could advise us where the thinking in Revenue is going on this issue and whether in terms of the policy developments in his Department, he recognises that certain low-income people miss out on potential tax benefits they could have for a variety of reasons and that we should aim to ensure that those people do receive them. Revenue is very quick when it comes to areas like retirement pensions or second incomes where they are declared and is on to them immediately, which is great. However, it should act as quickly when it comes to people's entitlements.