Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 187: To ask the Minister for Finance the reason tax relief is not granted on third level tuition fees paid by students to a college (details supplied) in County Kildare; if it is an approved college; if not, the reason for same; if it is fair that students should be left without their tax relief due to no fault of their own in these situations; and if he will make a statement on the matter. [45236/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 473A of the Taxes Consolidation Act 1997 provides that tax relief at the standard rate of tax (20%) is available in respect of tuition fees paid by an individual in respect of Third Level Education.

A criterion for eligibility for the tax relief is that, for a year of assessment, an individual pays qualifying fees. Qualifying fees means tuition fees in respect of an approved course at an approved college. The maximum limit on such qualifying fees for the academic years 2006/2007 and 2007/2008 is €5,000.

To qualify for the tax relief, the undergraduate courses must be of at least 2 academic years' duration. Some of those courses already approved include certain full-time and part-time courses in publicly funded third level institutions in the State (including institutions providing courses to which the Higher Education Grants Scheme applies) and in private colleges. Undergraduate courses in private colleges must be formally approved by the Minister for Education and Science for the purposes of the tax relief.

As regards colleges in the State, only courses undertaken in an approved college as defined in section 473A Taxes Consolidation Act 1997 are eligible for tax relief. Section 473A defines an approved college in the State as being:

(a) a college or institution of higher education in the State which—

(i) provides courses to which a scheme approved by the Minister under the Local Authorities (Higher Education) Grants Act, 1968 to 1992, applies, or

(ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section;

The relevant Minister in this context is the Minister for Education & Science.

The College and the course referred to in the details supplied are not currently on the list of approved colleges and courses and, therefore, fees paid for courses undertaken at that College do not qualify for tax relief under Section 473A. In addition, approval of qualifying colleges and courses is a matter for the relevant colleges and the Department of Education and Science, Student Support Services, Portlaoise Road, Tullamore, County Offaly.

Lists of approved colleges and courses are compiled by the Department of Education and Science on an annual basis (in August in advance of the new academic year) and forwarded to the Revenue Commissioners who post them to their website.