Seán Kyne (Galway West, Fine Gael)
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6. To ask the Minister for Finance the progress of the review of the law concerning inheritance taxation treatment of foster children, in particular the five year requirement before a foster child can be viewed the same as a blood relative for inheritance taxation purposes; and if he will make a statement on the matter. [28500/14]

Seán Kyne (Galway West, Fine Gael)
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What progress has been made in regard to the review of the law concerning inheritance taxation treatment of foster children, in particular the five-year rule?

Michael Noonan (Limerick City, Fine Gael)
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In my reply to a previous question from the Deputy in April last, I said that the conditions which must be met for the higher tax-free threshold of €225,000 to apply in the case gifts or inheritances taken by a foster child are set out in legislation. I understand the Deputy is referring to the requirement that, in the case of gifts to formally fostered children and gifts and inheritances to informally fostered children, the child must reside with the foster parent for at least five years before reaching 18 years of age for the higher threshold to apply, otherwise the threshold of €15,075 applies.

I said I would examine, without prejudice and in conjunction with the Revenue Commissioners, any tenable case that may be made for a change in the five year requirement. I went on to say, however, that it is only reasonable that the system demands that appropriate tests be met to justify the provision of the relief and to guard against any possible abuse. Since then, I have not received any correspondence setting out a tenable case that the requirements governing qualification for the higher group A threshold by a foster child need to be examined. If a tenable case is made, setting out the full circumstances in which it is considered that the existing provisions under which foster children qualify for the same group A threshold as natural children require to be revisited, the matter will be examined subject to the considerations set out in my earlier reply. If we can move this from theory to a practical example, I will examine the details of the practical example and, if it appears to be unfair, I will consider bringing forward an appropriate amendment.

Seán Kyne (Galway West, Fine Gael)
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I welcome the possibility that the Minister could examine a practical example. I am sure some cases can be brought to his attention. There is a slight amount of unrest because, whether a blood relative or not, a parent wants to provide for his or her children. Would the Minister consider a practical example in a case in which a child was resident for four years, nine months and 22 days, or four years and 11 months, and missed out on the benefit of the higher threshold? I welcome the children and family relationships Bill that is going through the Department of Justice and Equality in that it would recognise families in all their forms. This anomaly could be examined in individual cases.

Michael Noonan (Limerick City, Fine Gael)
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If I get a tenable example, I will examine it with a view to amendment.