Dáil debates

Tuesday, 23 November 2004

3:00 pm

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 65: To ask the Minister for Finance if he is satisfied all persons eligible for tax relief are receiving the relief to which they are entitled under medical relief, rent paid to private landlords, home carers and so on; and if he will make a statement on the matter. [29925/04]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that each year all PAYE taxpayers receive a certificate of tax credits and standard rate cut-off point setting out their entitlements. This certificate is accompanied by a detailed information letter setting out the main personal tax credits available for the year, tax rates and tax bands, exemption limits, and how to claim an adjustment to the tax credit certificate.

Once credits are claimed, they are in most cases automatically carried forward from year to year to avoid the necessity to reclaim. For self-employed taxpayers, their statutory return form that is issued annually contains reference to all claimable reliefs and allowances. Information on the full range of reliefs is available on the Revenue website with a range of claim forms for download and a "what's new" section.

Revenue also provides information via the Aertel service on RTE 2, on page 451. Revenue is reminding people via media advertisements of the tax relief available to taxpayers who maintain relatives or certain other persons in approved nursing homes. Revenue is developing a system to simplify procedures for claiming certain credits using a self-service facility via the Internet. When available, which is likely to be early in 2005, this will be advertised widely to encourage taxpayers who have entitlements to various tax credits to claim them.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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This matter arose from the recent visit by the Chairman of the Revenue Commissioners to the Joint Committee on Finance and the Public Service. I was staggered to note how low the take-up was in medical relief, for example. Most people would spend at least €125 annually on medicine, and a family would spend at least €250, yet only 105,000 people out of a population of 4 million claimed the relief. In the private rental area there are 90,000 people claiming relief. We know from the CSO that there are 220,000 people in rented accommodation, though some of those are in local authority housing. Only 100,000 people claim home carer credits. It is clear that many people are not claiming their entitlements so the Minister for Finance and the Revenue Commissioners are exacting tax which they should not be exacting. Will the Minister make a better effort to look at the particular categories where there is clear evidence of under-claiming, and make it easier for people to receive their entitlements? This is excess taxation on many people in the low-paid categories in those areas.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Reliefs are made available for all citizens to claim and we try to make people as aware as possible. There is no policy to do otherwise and the Revenue Commissioners are proactive in this area. Much discussion takes place during the time of the budget and I hope that will heighten awareness. After each budget the budget book is placed on the Department's dedicated website, www.budget.gov.ie.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Will the Department add a note to people's tax credit notification asking if they have claimed tax reliefs to which they are entitled if they spend more than a certain amount on medicines or on private rental?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The budget summary leaflet is prepared in Irish and English.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Would it help if the Department put the information in bright lights on the tax certificates sent to people in March each year?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Whatever about bright lights on tax forms, we could ask the Chairman of the Revenue Commissioners to see what could be done to assist.

Photo of Dan BoyleDan Boyle (Cork South Central, Green Party)
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One tax relief which seems to have a low take-up is the standard tax rate relief on refuse charges. From 1 January 2005, with the application of the polluter pays principle, seven local authorities are threatening to grossly increase the level of charges in their areas. Has the Minister made allowance for this anticipated increase and does he anticipate a greater take-up of this relief in the next tax year?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I cannot comment on any issue that might be related to the budget