James Bannon (Longford-Westmeath, Fine Gael)
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Question 53: To ask the Tánaiste and Minister for Finance the reason a nursing home (details supplied) in County Longford does not qualify for a tax rebate for those paying for an elderly relation, when others outside Ireland, including a number in Scotland, France and the US, along with numerous others listed on his Department's website are approved and that assurances were given that the particular nursing home was approved and did qualify; the reason so few nursing homes are approved in County Longford; and if he will make a statement on the matter. [11140/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the nursing home in question is not currently on the list of approved institutions for the purposes of Section 469 of the Taxes Consolidation Act 1997 as no request has been received to have the institution added to the list. The list in question is maintained by the Revenue Commissioners and can be accessed at http://www.revenue.ie/ index.htm?/publications/lists/approved-hospitals.htm.Section 469 of the Taxes Consolidation Act 1997 defines "hospital" as meaning:

(a) any institution which is provided and maintained by the Health Service Executive for the provision of services pursuant to the Health Acts, 1947 to 2004.

(b) any institution in which services are provided on behalf of the Health Service Executive pursuant to the Health Acts, 1947 to 2004

(c) any hospital, nursing home, maternity home or other institution approved of for the purposes of this section by the Minister for Finance after consultation with the Minister for Health and Children;

In order for a nursing home to qualify for tax relief under section 469, an individual acting on behalf of the nursing home or, indeed, a person who wishes to claim for health expenses incurred in the nursing home, should request that it be approved. This can be done by contacting the Income Tax Policy Section, Department of Finance, Upper Merrion Street, Dublin 2, who will consult with the Department of Health and Children as required under Section 469. These rules apply equally in relation to all Counties.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 54: To ask the Tánaiste and Minister for Finance his views on a VAT exemption inquiry (details supplied). [11148/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to 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. Accordingly, there is no provision in EU law that would permit the removal or reduction of VAT based on the social, medical or economic status of the consumer. In relation to the VAT rate that applies to wigs, the position is that under the EU VAT Directive Member States may retain the zero rates on goods and services that were in place on 1 January 1991, but cannot extend zero-rating to other goods and services. The zero VAT rate cannot therefore be applied to wigs in general. The supply of wigs for children under 11 years of age would qualify for zero rating as an item of children's clothing.

In addition, Member States may only apply a reduced VAT rate to those goods and services that are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of a disabled person, it does not include wigs. Thus, the reduced rate cannot be applied to the supply of wigs. Therefore, apart from wigs for children under 11 years of age, the only rate of VAT that can apply to the supply of wigs is the standard VAT rate, which in Ireland is 21%.

However, I am advised by the Revenue Commissioners that, in the case of persons suffering from cancer, the full VAT-inclusive cost of a wig qualifies for income tax relief at the individual's marginal rate of tax under the heading of health expenses.

Bernard Durkan (Kildare North, Fine Gael)
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Question 55: To ask the Tánaiste and Minister for Finance the tax free allowance in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [11168/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that a certificate of tax credits and standard rate cut-off point issued to the taxpayer on 31 January 2008, which incorporated tax credits amounting to €5,490 per annum and standard rate band of €39,400 per annum. However, the taxpayer's income from the Department of Social and Family Affairs had not previously been declared to the Revenue Commissioners. Therefore, the taxpayer's tax credits and standard rate band will require to be adjusted accordingly. A revised certificate of tax credits and standard rate cut-off point will issue to the taxpayer in the coming days, which will reduce the taxpayer's tax credits to €2,742.32 per annum and the standard rate band to €25,661.60.

The taxpayer's employment income has not been subject to income tax in 2008, as her tax credits have been sufficient to offset any liability to tax. Based on her current level of employment income, the revised amounts of tax credits and standard rate band will not alter that position.