Róisín Shortall (Dublin North West, Labour)
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Question 363: To ask the Minister for Finance the statutory instrument which exempts recipients of foster care payments from paying income tax on that part of their income; when such income has not been taxable; and the specific payments same relates to. [2906/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Certain foster care payments are exempt by virtue of section 192B of the Taxes Consolidation Act 1997. This measure was introduced by section 11 of the Finance Act 2005 and applies with effect from 1 January 2005.

The provision exempts from income tax, payments made by the Health Service Executive to a carer in respect of the care of foster children. Under the legislation, "carer" means an individual who is or was a foster parent or relative or who takes care of an individual on behalf of the Health Service Executive.

The payments in question are those made in accordance with Article 14 of the Child Care (Placement of Children in Foster Care) Regulations 1995 or Article 14 of the Child Care (Placement of Children with Relatives) Regulations 1995. In addition, the exemption covers certain discretionary payments made by the Health Service Executive in respect of former foster children between the ages of 18 and 21 who continue to reside with carers. It also covers such payments to carers in respect of those aged 21 years or over who suffer from a disability or are in full-time education where the disability or full-time education commenced before they reached the age of 21.

Finally, corresponding payments relating to foster children made in accordance with the law of another EU member state are also exempted under the provision.