Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 18:

In page 59, between lines 34 and 35, to insert the following: “Report on the introduction of refundable tax credits to the income tax system

21.The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on the introduction of refundable tax credits to the income tax system, options for their design, associated costs and impact in addressing social and policy objectives such as reducing in-work poverty.”.

We discussed earlier what I believe to be the importance of refundable tax credits. If it existed in the tax code, it would be very helpful in terms of the renter's tax credit. Low-income employees are not in a position to benefit from increases in tax credits or bands and so forth. While they may have a liability, they are not able to use up their entire credits because their tax liability is not high enough. Therefore, this would be a case were a refundable tax credit would be paid for them. It would be a refund from the Revenue Commissioners at the end the year. It has been advocated for by a number of individuals. We have advocated in terms of the renter's tax credit. The proposal is to carry out a report regarding how the introduction of such credits would sit in terms of their design, associated cost and the impact in addressing social and policy objectives such as reducing in-work poverty.