Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for his question. While my officials are preparing the information for me, I might, with the consent of the committee, indicate a Report Stage amendment.

I refer back to a discussion we had on Thursday afternoon last on section 3 of the Bill, relating to the tax treatment of the incorrect birth registration payment. I wish to correct the record. I indicated to Deputy Boyd Barrett and Deputy Farrell, and to the committee, that the policy intention is that the ex gratiapayments made by the Minister for Children, Equality, Disability, Integration and Youthwould be free from income tax irrespective of when they are made. However, although subsection 2 of the new section 192L to be inserted into the Tax Consolidation Act does not contain any cut-off date, as I indicated, the preceding definition of “qualifying individual” as currently drafted does include such a restriction and refers to “cases which were confirmed by the Child and Family Agency on or before 30 September 2022”. I apologise to the committee for any misunderstanding that I may have caused by not making reference to that section.

Following further inquiries with the Department of Children, Equality, Disability, Integration and Youth and in the light of the Committee Stage debate, I understand that while it is very unlikely, the possibility cannot be ruled out that further individuals could be identified after 30 September 2022 who ought to qualify for an ex gratiapayment. The section had been originally drafted on the basis that it was most unlikely that there would be further persons qualifying for this particular payment but this is now less certain. While we noted last week that the Minister for Children, Equality, Disability, Integration and Youth may review the cut-off date, such a review could have no impact on the date in section 3 of the Bill. In order to be clear about where the matter stands, I will be bringing forward an amendment on Report Stage to remove this cut-off date in the definition of "qualifying individual". This will ensure that the policy intention of section 3 of the Finance Bill is absolutely clear and that, irrespective of when the ex gratiapayments are made and regardless of the date when cases are confirmed by the Child and Family Agency, they will be exempt from income tax, USC and PRSI.

Regarding Deputy Doherty's question, the most recent tax expenditure report from the Department of Finance estimated that there are now 25,000 taxpayers availing of the scheme. The taxes forgone are estimated to be at €5.5 million. The cycle to work scheme operates on a self-administration basis but the most recent report we did estimated it covers around 25,000 people.