Catherine Murphy (Kildare North, Independent)
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Question 130: To ask the Minister for Finance the efforts which have been made to overcome the problem of VAT being charged by commercial suppliers of home care packages; if persons who have had to pay VAT will be refunded; if the VAT collected will be added to the €150 million home care package fund; and if he will make a statement on the matter. [33062/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that homecare services provided directly by the Health Service Executive (HSE) do not generally come within the scope of VAT, as Public Bodies are not regarded as taxable persons. This means that they do not charge VAT on the services they provide and cannot recover VAT incurred on their input costs.

The package of services aimed at older people, announced by the Minister for Health and Children in the 2006 Budget, are delivered through the HSE, by a range of providers including the HSE itself, voluntary groups and the private sector. These homecare packages consist of a mixture of grants, contracted care services, therapeutic input and equipment and other such community services as identified in the needs assessment as being necessary to facilitate the older person to remain living in their own home.

However, where homecare services are provided for by private companies for a consideration in the course or furtherance of business, the provider may be obliged to register and account for VAT at the appropriate rate depending on the type of service they provide. Homecare provided to individuals consists of a variety of services which may be liable to VAT at different rates. The current VAT treatment of such services is in accordance with EU Sixth VAT Directive with which Irish VAT law must comply.

However, my Department is examining in consultation with the Department of Health and Children the scope within the relevant EU Directives to exempt the provision of such services from VAT in the future.

Joe Sherlock (Cork East, Labour)
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Question 132: To ask the Minister for Finance the number of people that have claimed the home child care tax credit over the last year; and if he will make a statement on the matter. [33108/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the latest available information in respect of taxpayers availing of the home carer's tax credit is for the income tax year 2003. The potential number of claimants for 2005 can only be provisionally estimated and is subject to revision.

The number of PAYE taxpayers availing of the home carer's tax credit in 2005 is estimated to have been 69,300, while the number of self-employed taxpayers availing of the credit for the same year is estimated to have been 20,700.

The numbers availing represent income earners who were in a position to absorb at least some of the home carer's tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil without reference to the home carer's credit.

It should be noted that the numbers availing of the credit are rounded to the nearest hundred as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.