Jack Wall (Kildare South, Labour)
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Question 224: To ask the Minister for Finance the position regarding tax returns made by a person (details supplied) in County Kildare or by a company; the years concerned; the amount paid; and if he will make a statement on the matter. [8393/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the taxpayer is registered only as a PAYE employee. His records show that he was an employee of six companies/persons at different times between 4th December 1998 and 25th October 2002. There is no record of any employment since that date.

There is no record of the taxpayer being registered for income tax as a self employed person and therefore no income tax returns are recorded as having been received.

I am further advised by the Revenue Commissioners that they have no registration or record for the company named and that they can find no entry for this company with the Companies Registration Office.

If the taxpayer has any further queries he should contact Mr. Sean McDonnell, Kildare Revenue District, Grattan House, Lower Mount Street, Dublin 2. Telephone 01-6474770.

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 225: To ask the Minister for Finance the reason the child dependance allowance portions of social welfare payments are assessable for income tax, particularly in view of the fact that maintenance payments for child dependants are not liable for tax; if he will remove CDAs from tax liability; and if he will make a statement on the matter. [8416/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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A child dependant allowance can arise from a number of sources such as social welfare legislation, employments and occupational pension schemes.

As regards the child dependant allowance payable by the Department of Social and Family Affairs, the 1998 Supreme Court case of Ó Síocháin v. Neenan held, on interpretation of the relevant social welfare legislation, that the widow's pension, including the child dependant element, is the beneficial entitlement of the widow. The reason, therefore, that the child dependant allowances are taxable is that they form part of payments to parents that are treated as income for tax purposes.

However, by virtue of specific statutory tax exemption, the child dependant allowance paid to individuals in receipt of either unemployment benefit or disability benefit is not taxable. A further statutory tax exemption relieves Child Benefit from tax.

In relation to the income tax treatment of maintenance payments in respect of children it is the case that they are not taxable in the hands of the children or the receiving spouse. However, in the case of both legally enforced and voluntary maintenance payments in respect of children, the position is that the payments are treated the same way as if the taxpayer was providing for the child out of his or her after-tax income. This is in line with the tax treatment of all other parents, where the cost of maintaining their children is not tax deductible.

I do not propose to make any changes to these arrangements.