Dan Neville (Limerick West, Fine Gael)
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Question 71: To ask the Tánaiste and Minister for Finance the reason home caring spouse credit was not given as a tax credit to a person (details supplied) in County Limerick; and if he will make a statement on the matter. [9818/08]

Dan Neville (Limerick West, Fine Gael)
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Question 72: To ask the Tánaiste and Minister for Finance the reason a person (details supplied) in County Limerick is not getting the home caring credit on their husbands tax free allowances; and if he will make a statement on the matter. [9819/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 71 and 72 together.

The position is that while the carers allowance, payable by the Department of Social and Family Affairs, is disregarded in determining the total income of the home carer for the purposes of claiming the home carer tax credit, it is a taxable source of income.

Taking account of the most up to date information available to them, the Revenue Commissioners have determined that it would appear to be more beneficial for the couple to be taxed as a married two-earner couple rather than a married one-earner couple. As a result, the home carer credit has been withdrawn for 2008 and the standard rate band for the couple increased from €44,400 to €70,800 with transferability limited to €44,400. This increase in the value of the standard rate band will be more than sufficient to offset the loss of the home carer credit in the calculation of the couple's tax liability. Given the information available, this will ensure that the couple will not be liable to tax at the higher rate in 2008.

However, the Limerick Revenue Office will contact the taxpayer to ascertain if any further information is available and will revise the position if necessary, ensuring that the couple receive the most beneficial tax treatment appropriate to their situation.

Michael Ring (Mayo, Fine Gael)
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Question 73: To ask the Tánaiste and Minister for Finance if a voluntary community group (details supplied) in County Roscommon can reclaim the VAT paid on defibrillators for their community. [9846/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. In this case, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer.

In relation to the VAT rate that applies to defibrillators, the position is that under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators.

Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate which in Ireland is 21%.

Bernard Durkan (Kildare North, Fine Gael)
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Question 74: To ask the Tánaiste and Minister for Finance if he or his Department have received correspondence from a group (details supplied) in County Wexford; his plans to address same in early date; and if he will make a statement on the matter. [9867/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have recently received the correspondence referred to by the Deputy. In this regard, I would point out that matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. In this case, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer.

In relation to the VAT rate that applies to defibrillators, the position is that under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators.