Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy McGrath for his contribution. Although I was not here last night, I watched this debate, which was quite constructive in regard to this important matter. The Minister for Finance wants to thank Deputies Michael McGrath, Doherty and Donnelly for their contributions and clarifications on this issue during the debate last night.

The amendment appears to envisage a number of changes to the current system. The first is that entitlement of the secondary claimant would be linked to compliance with the court maintenance order, the second is that a parent will have some preference over the possible secondary claimant, such as a grandparent, and the third is that part of the credit rather than the whole credit could be transferred. It is not clear in the amendment whether the Deputy envisages that the current requirement that the child reside with the secondary claimant for at least 100 days of the year would continue.

Linking the transfer of the credit, or part of the credit, to parentage or court-ordered maintenance payments could raise constitutional concerns. From a practical point of view, it is difficult to see how it would be administered. Disputes about whether maintenance was paid or not would then give rise to disputes about whether the credit tax was due or not. As I said, it is not clear whether the Deputy sees his amendment as giving a parent with whom a child resides for only a minimal period of the year preference over say a grandparent with whom a child resides for more than 100 days of the year.

While the Minister does not propose to accept the amendment at this time, he will on foot of last night's debate ask his officials to seek the advice of the Attorney General's office on this matter. As regards relinquishing a portion of the credit, the Minister will instruct his officials to work with the Revenue Commissioners to investigate the administrative, operational and data protection issues involved. It is worth noting that the relinquishment of a portion of the credit is likely to give rise to significant difficulties in some situations - for example, where the primary claimant has children with more than one partner. There is also likely to be budgetary implications which will have to be considered but we get the thrust of what Deputy McGrath is trying to achieve in the amendment. The Minister has outlined the difficulties and the unanswered questions he sees and has asked his officials to engage with the Attorney General's office on this matter. Once that is done, the Minister will consider the matter further.

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