Finian McGrath (Dublin North Central, Independent)
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Question 284: To ask the Minister for Finance if further tax relief assistance will be granted to a person (details supplied) particularly with their annual cost of care at €65,000. [14238/06]

Finian McGrath (Dublin North Central, Independent)
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Question 289: To ask the Minister for Finance if assistance will be given to a person (details supplied) with tax relief matters relating to their €65,000 annual cost of care; and if he will advise the family on this matter. [14262/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 284 and 289 together.

The position is that section 467 of the Taxes Consolidation Act 1997 provides for a tax deduction at the individual's highest rate of tax in respect of the costs incurred by an individual of employing another person, including a person whose services are provided by or through an agency, to take care of him or her, a spouse or a relative who, throughout the relevant tax year, is totally incapacitated by reason of physical or mental infirmity. The amount of the tax deduction is €50,000 for the 2006 tax year, €30,000 for previous tax years, or, if lower, the actual amount expended in the relevant tax year in employing the person.

The key to this tax relief is that the person incurring the cost of the care employs the carer either directly or, where the employed carer is provided by or through an agency, the agency employs and pays the carer directly. The employment of a carer relief is not available where the carer is self-employed for tax purposes. However, for this purpose, the question of whether an employment relationship exists depends on the circumstances of an individual case and not necessarily on any assertion by an individual carer as to their status.

As the Deputy is aware, tax relief may also be due under the heading of health expenses under section 469 Taxes Consolidation Act 1997 regarding care provided in a nursing home. In addition, health expenses relief may also be due in cases of serious illness where qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient's home. In such a case, tax relief will be allowed where a medical certificate is provided which shows the nature of the patient's illness; states that constant nursing care by fully-qualified nurses in the patient's home is required; and covers the full period for which home nursing is being claimed, and the nurses providing the nursing care are fully qualified and their full names, addresses and qualifications have been supplied.

In a separate reply, the Minister for Health and Children has dealt with those aspects of the Deputy's question concerned with care services provided by the Health Service Executive.