Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The precise number of recipients that will be liable to income tax on their maternity benefit payment is not available. However, I understand that the Department of Social Protection have estimated that the average weekly maternity benefit recipients in 2013 to be 22,800, including those who will not have an increased liability to income tax.

As a result of maternity benefit payments becoming liable to income tax for all claimants, from the 1 July 2013, a number of possible tax outcomes could arise:

1.An individual may pay no income tax on their maternity benefit payment as their tax credits will be sufficient to reduce their tax liability to zero.

2.An individual may pay income tax on some or all of their maternity benefit payment at the standard rate.

3.An individual may pay income tax at the standard rate on a portion of the maternity benefit and the higher rate on the balance of the maternity benefit payment.

4.An individual may pay income tax on their maternity benefit payment at the higher rate.

Accordingly, the tax liability on maternity benefit payments will ultimately depend on the total income of the individual or couple concerned in the tax year or years concerned.

I would point out though, that maternity benefit payments will remain exempt from Universal Social Charge and PRSI.

It is not that people might be trying to hide something which is criminal or illegal. They may have very good grounds for doing so, particularly in the areas of sexual orientation, religious beliefs and so on. We are really beginning to probe into citizens' very personal details. We have always spoken about Big Brother watching us. As software and communications between various agencies evolve, there will come a time when a citizen's information will be passed around the system very easily. Why should an agency have the right to the information a person puts on an application form, particularly in the area of health? In any decision made in this regard the applicant should be made fully aware that all information will be made available on request to the Department of Social Protection, the Revenue Commissioners and other agencies, not in the small print at the back of the application form where he or she signs. They would then not know that was the case. There should be an obligation to clearly highlight this. We could debate the issue of personal and sensitive data forever and a day. It is welcome that the Data Commissioner was involved in the consultation, as I would not have expected anything less. However, it is a little disturbing.

The other issue in section 8(3) is that a data exchange agreement may be varied by the parties to the agreement. At what stage would it be varied? That is critical. If a person makes an application and submits all of his or her personal data based on the exchange agreement of the day, are we now saying information previously furnished will be furnished under the new agreement? That is something which would be of concern to many. If someone makes an application and provides information in good faith based on the exchange agreement in place, he or she might find sometime in the future that the agreement has been changed by the parties to it without consulting him or her and that the information may be furnished to other agencies of the State. If people make an application in good faith and furnish full information, that information should only be passed on with their consent if there is a change to the data exchange agreement. Am I missing something in this regard? Is the applicant also a party to the agreement?

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