Arthur Morgan (Louth, Sinn Fein)
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Question 139: To ask the Minister for Finance when the Revenue Commissioners report on reforming taxation here is due. [12802/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I take it that the Deputy is referring to the work of the Commission on Taxation which was established in 2008 to review the structure, efficiency and appropriateness of the Irish taxation system. The Commission is requested to report on the results of its examination and consideration and to make such recommendations as, and when, it thinks fit to the Minister for Finance but not later than 30 September 2009.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 140: To ask the Minister for Finance if, in conjunction with the Department of Social and Family Affairs, he will address the anomaly whereby cohabitation with another person is considered as a means for social welfare purposes, yet it is not considered by his Department for tax credit purposes; if his attention has been drawn to the disadvantage that this puts such families at; if same will be addressed in the forthcoming budget; and if he will make a statement on the matter. [12807/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Cohabitating couples are expressly recognised for the purpose of social welfare law but are not recognised for the purposes of income tax law. Although this may appear contradictory, the main aim of both the welfare code and the tax code is to uphold the constitutional right of married couples not to be treated less favourably than unmarried couples. The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy vs the Attorney General (1980) which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together and having the same income.

The treatment of cohabiting couples for the purposes of social welfare is primarily a matter for the Minister for Social Community and Family Affairs. However, my understanding is that it is also based on the principle that married couples should not be treated less favourably than cohabiting couples. This was given a constitutional underpinning following the Supreme Court decision in Hyland v Minister for Social Welfare (1989) which ruled that it was unconstitutional for the total income a married couple received in social welfare benefits to be less than the couple would have received if they were unmarried and cohabiting.