Richard Bruton (Dublin North Central, Fine Gael)
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Question 168: To ask the Minister for Finance the way the income tax levy will apply to maintenance payments in the terms of the giver and the receiver; and if protections have been put in place to prevent double taxation. [45954/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The income levy will apply on the gross or aggregate income of each individual taxpayer subject to the specific exemptions which have been set out in the legislation. Representations have been made in relation to the impact that the legislation would have on persons who had a obligation to make maintenance payments to a separated spouse under a legally enforceable order, in particular the possibility of an exposure to an effective double charge to income levy on both parties. To address this I brought forward an amendment at Committee Stage of the Finance (No.2) Bill (amendment no. 7) on Tuesday 9 December to provide for a statutory deduction from gross income for the amount of the maintenance payment being made by the giver, which would place the operation of the levy solely on the payment when received by the beneficiary. Where appropriate the relevant exemptions, if applicable, will then be available to the recipient of the maintenance payment.