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

I understand the Senators propose that in circumstances where a primary claimant has no entitlement to the restructured tax credit because he or she has married or entered into a civil partnership or a cohabiting relationship, the secondary claimant would have full entitlement to the tax credit. It is intended that the restructured credit will be an activation measure and it is designed to be an in-work benefit to support single individuals who are the primary carers to take up or remain in employment. It will assist single parents or carers with the cost of child care.

Given the difficult fiscal environment, it is essential to review all tax reliefs, credits and incentives to ensure they are properly targeted and, if necessary, refocused to achieve the social economic objectives set for them. A system which allows multiple claims in respect of the same child is unsustainable and not in keeping with the original and current intention of the credit. For this reason, I have refocused the tax credit for the benefit of those single individuals who care for a qualifying child for the whole or a greater part of the year. However, where the child is part of the family unit and care is provided by two adults together, whether married, civil partners or cohabiting, clearly since the primary claimant will no longer satisfy the basic qualifying criterion of being a single person caring for a child, there is no entitlement to a tax credit. Therefore, the issue of granting the credit to a secondary claimant for whom the basic requirement is that a qualifying child reside with him or her for a minimum of 100 days in the year does not arise. The credit is only available to a secondary claimant by virtue of relinquishment by the primary claimant who has established his or her entitlement to the credit in the first instance. I must, therefore, reject the Senators' recommendation.