John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 206: To ask the Minister for Finance the cost of increasing the income disregard threshold so that home carers can qualify for a tax credit equivalent to the PAYE credit; and if he will make a statement on the matter. [26898/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that statistics are not available at this time which would enable the information requested by the Deputy to be provided.

Budget 2006 introduced a new tax exemption for childminding where an individual minds up to three children, who are not their own, in the minder's own home. The cost of the exemption was estimated to be €4 million in a full year.

Where the gross annual income from the provision of these childcare services does not exceed €10,000, the income is fully exempt from tax. To avail of this relief, the care provider must be self-employed (not an employee) and include the gross income in their annual return of income to the Revenue Commissioners. The claim for tax exemption is made in this return. The claim must be accompanied by evidence that the care provider has notified the Health Service Executive that they are providing childminding services. In practice, this will mean the officer appointed by the local City or County Childcare Committee. An individual must 'elect' to claim the exemption by notice in writing to the inspector on or before the specified return date for the chargeable period.

The specified return date for 2006 is 31 October 2007. Accordingly, it will be some time after that before comprehensive statistics in relation to the number of claimants become available and the cost of any increase in the threshold can be estimated.