Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 310: To ask the Minister for Finance the reason the widowed parent tax credit ceases after five years; his plans to extend the relief; and if he will make a statement on the matter. [14975/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The widowed parent tax credit, which applies on a sliding scale for the first five years after the year of bereavement, is intended as transitional relief to help such parents cope financially with the change from married to widowed status. It was never intended to apply for an indefinite period. Prior to 1998, the relief, then an allowance, applied for a period of three years after the year of bereavement. It was extended to apply for a period of five years in the budget and Finance Bill 1998.

Compared with the generality of taxpayers, widowed parents are treated favourably by the income tax code. In the year of bereavement, a widowed person may receive a personal tax credit of €3,260, which is equivalent in value to the married person's tax credit. Following the year of bereavement, a widowed parent with a qualifying child or children may qualify for the one-parent family tax credit of €1,630 in addition to the personal tax credit of €1,630. In addition, the widowed parent tax credit is available for the five years after the year of bereavement as follows:

Year 1 €3,100

Year 2 €2,600

Year 3 €2,100

Year 4 €1,600

Year 5 €1,100

These rates were increased to their present levels in budget 2006 having also been increased in budget 2005.

Therefore, in the first year following bereavement, a widowed parent is entitled to aggregate tax credits of €6,360, comprising a single personal credit of €1,630, a one-parent family credit of €1,630 and a widowed parent credit of €3,100. Besides the tax credits, widowed parents may also be entitled to receive a standard rate band which is €4,000 per year greater in value than the single standard band of €32,000.

I am satisfied that widowed parents receive favourable treatment under the tax code and I have no plans to further alter the structure of the widowed parent tax credit at the present time.

Bernard Durkan (Kildare North, Fine Gael)
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Question 311: To ask the Minister for Finance if a refund of income tax is due in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [15006/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that there is no refund due in this case for 2002, 2003 and 2004. PAYE balancing statements for these years will issue in the coming days to the taxpayer. A PAYE balancing statement for 2005 will issue shortly thereafter, following receipt of details of the taxpayer's pay and tax deducted up to the date of cessation of employment from her former employer.