John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I would make a further point that might be helpful. Agreement as to who would be the principal carer of a child is a matter for the parents or guardians. However, in the first instance, only the principal carer will be entitled to the credit, a policy change recommended by the Commission on Taxation in 2009. As regards the parent who is taking care of the child, while he or she may not agree to give a concession in respect of the credit, there is provision for agreement having been made with Revenue supported by documentary evidence. Even without the secondary carer getting a letter from the primary carer, agreement can have been given in this respect.

There is no specific tax credit for children in the tax code and the Senator should be aware that married or cohabiting couples are unable to avail of any additional credit in respect of their children. This is despite the fact that in certain cases such couples also have to maintain two households due to the location of employment. Notwithstanding the above, as a result of the amendment to this section, which the Minister brought forward, the primary carer may relinquish the credit such that it can be claimed by a non-primary carer in situations, for example, where the primary carer has no tax liability. That is the key point. I can forward the Senator the full briefing note on this and it may address some of the queries she raised.