Kieran O'Donnell (Limerick City, Fine Gael)
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I welcome amendment No. 39 and the provision which allows the tax credit to be transferred from one carer to the other, with agreement. However, in terms of practicalities, there are situations, unfortunately, where the mother and father do not get on. If the primary carer is not paying tax or cannot effectively use the tax credit in a tax year, a practical option might be to provide that after the end of the tax year, if the credit was not or could not be used by the primary carer, it could be availed of by the secondary carer without the need for agreement. That would allow the primary carer to retain the credit for the tax year so that if he or she takes up work during the year, the credit is available. If the primary carer is unwilling to relinquish the credit during the year, due to communications problems or other difficulties, then an independent assessment could be carried out at the end of the year to ensure that if the credit is not used by the primary carer, it can be transferred automatically to the secondary carer. That would address the situation whereby one party, who could not use the tax credit, would not agree to its transfer to the other party. Communications difficulties are a reality when relationships break down.

I welcome the broad thrust of the amendment, particularly the subsection which allows for the tax credit to be relinquished. The Minister might consider including a provision whereby an independent review could be carried out by the Revenue Commissioners to ensure that the tax credit is availed of by one parent or the other. That would address those situations where there are communications difficulties between both parties.