Niall Collins (Limerick West, Fianna Fail)
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Question 67: To ask the Minister for Finance the plans he has to allow unmarried couples living together on a long-term basis to utilise their partner's tax credits and allowances similar to married couples; and if he will make a statement on the matter. [28484/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Generally speaking, the tax system treats members of cohabiting couples as separate and unconnected individuals. Each partner is a separate entity for tax purposes and credits and bands and reliefs cannot be transferred from one partner to the other.

The Working Group Examining the Treatment of Married, Cohabiting and One-Parent Families under the Tax and Social Welfare Codes, which reported in August 1999, was sympathetic, in principle, to changes in the tax legislation to address the issues raised relating to cohabiting couples and reported that the options that it set out should be considered further. However, it acknowledged in relation to the tax treatment of cohabiting couples that a key issue is whether tax law should proceed ahead of changes in the general law.

There are a number of recent reports which will help to inform the Government's deliberations in this general area including:

the Tenth Progress Report of the Oireachtas All-Party Committee on the Constitution entitled 'The Family' which was published in early 2006;

the Options Paper presented to the Minister for Justice, Equality and Law Reform in November 2006 by the Working Group on Domestic Partnership (the Colley Group); andthe Report of the Law Reform Commission on the rights and duties of cohabitants which was published in December 2006.

I would also point out that An Agreed Programme for Government contains the following provision in relation to civil partnerships:

"This Government is committed to full equality for all in our society. Taking account of the options paper prepared by the Colley Group and the pending Supreme Court case, we will legislate for Civil Partnerships at the earliest possible date in the lifetime of the Government."

In addition, on 24 June 2008 the Minister for Justice, Equality and Law Reform published the Heads of a Civil Partnership Bill which had been approved by the Government.

I would view as problematic and unwise a situation where changes in the tax code relating to the treatment of cohabiting couples would set a headline in advance of developments in other relevant areas of public policy such as in the area of legal recognition of relationships other than married relationships.