Tom Clonan (Independent)

I thank the Minister of State for coming here this morning. I am raising this matter on behalf of James, Sheila and Kieran Sexton. They are Cork based. They find themselves in a very difficult position because they do not have children. James and Sheila are a married couple. James’s brother Kieran has returned from London, as many Irish people do over the generations. Kieran has come home to the family home where he has, at the age of 58, been diagnosed with an incurable cancer, lymphoma, and he is trying to get his financial affairs in order.

This raises the core subject of this Commencement this morning, which is about inheritance tax discrimination. This is something I was not aware of. If people in Ireland who do not have children – I do not like the term "childless" because it almost contains within it an assumption that there is a lesser or lower status applying to people who just do not happen to have children – leave anything in their wills, those who inherit must pay full capital acquisition tax. I believe that is unfair, discriminatory and inequitable. It is self-evident. This is something that affects every single constituency in this Republic.It affects every Member of this House and the Dáil. It also affects our families. For example, if somebody leaves a property worth €400,000 in their will to a son or daughter, they pay no capital acquisitions tax, which is right and proper. However, if that person happens not to have children and leaves the property to a beloved niece or nephew, he or she has to pay €118,000 in tax, which is completely unfair. The State does not need this money.

In previous responses on this matter, the Minister stated that there is a presumption of constitutionality for this legislation unless the courts find differently. He said that the CAT legislation enjoys that presumption of constitutionality. I doubt that because the Irish for household is teaghlach, which contains a much broader definition of what constitutes a family. It is not just the mother and father; it is also the elderly, like Peig Sayers ina suí next to the fire, and that community of relatives who help to raise families in this Republic of ours. We are rightly proud of our extended families.

This actually breaches the Equal Status Acts because it discriminates against people on the basis of their family status. Couples may rightly leave €400,000 to a registered charity, for example, My Little Pony, and capital acquisitions tax does not have to be paid on that. Yet, if a couple who do not have children want to leave the same amount to a niece or a nephew who might be trying to make their way in life and get a roof over his or her head, he or she has to pay €118,000. That is both unfair and inequitable. The Minister has argued that this is constitutional, but it is something he could change. It would be very positive if he did so. It would be relatively cost neutral to do it and it would right a grievous wrong. It would help not just people who do not have children but their extended families, which is all of us. It is the right thing to do. I ask the Minister to use his discretion to amend this.