Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 167: To ask the Minister for Finance if his attention has been drawn to the fact that the tax relief on medical expenses is not available to people with large health care bills aged over 65 years who are exempt from income tax on the basis of their age and yet often this group cannot qualify for a medical card because the income threshold is set so low. [13312/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Relief for health expenses is allowed as a deduction at the standard rate of tax by way of review of liability at the end of the year. The relief is available as a refund of the amount of income tax paid by the taxpayer only. Where an individual's income tax liability has been reduced to zero or no income tax has been paid by a person for a tax year, he or she will have not be in a position to avail of the relief for that year. It should be noted that tax relief for health expenses is only one means through which the State may provide support to those in need of medical services. Account should also be taken of supports provided through the Health Service Executive (HSE).

The medical card is one such support. The assessment of eligibility to medical cards is statutorily a matter for the Health Service Executive (HSE) and is determined following an examination of the means of the applicant and his/her dependants. Under Section 45 of the Health Act 1970 medical cards are provided for persons who, in the opinion of the HSE, are unable without undue hardship to arrange general practitioner medical and surgical services for themselves and their dependants. Section 58 of the Health Act, 1970, as amended, provides for GP visit cards for adult persons with limited eligibility for whom, in the opinion of the HSE, and notwithstanding that they do not qualify for a medical card, it would be unduly burdensome to arrange GP medical and surgical services for themselves and their dependants.

In assessing eligibility under the general medical card scheme, the HSE uses guidelines based on people's means, which includes their income, certain allowable outgoings and the effect of other factors such as medical or social need which may impact on their ability to meet the cost of GP services for themselves and their families. The current income thresholds for the general medical card scheme are set out in tabular form below.

Under the Health Act 2008, automatic entitlement to a medical card for persons aged 70 or over ceased on 31st December 2008, and with effect from 1st January 2009, the income thresholds for entitlement to a medical card for those aged 70 or over is €700 (gross) per week (€36,500 per year) for a single person and €1,400 (gross) per week (€73,000 per year) for a couple. Where the spouse/partner is under 70 years of age, he/she can qualify under the over 70s medical card scheme if the combined gross incomes of the applicant and dependant spouse/partner are within the income threshold limit of €1,400 (gross) per week. Individuals who do not qualify for the medical card can use the Drugs Payment Scheme, which protects against excessive costs arising in relation to medicines. Under this scheme, no individual or family unit pays more than €100 per calendar month towards the cost of approved prescribed medicines. The scheme is easy to use and significantly reduces the cost burden for families and individuals incurring ongoing expenditure on medicines.

The rates above show allowed weekly income, after tax/PRSI and before mortgage/rent, childcare and travel to work expenses are allowed for.

Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 168: To ask the Minister for Finance if he will confirm that tax relief on health insurance can be applied to people who are exempt from income tax; and if, on that basis, tax relief at source can be applied to health care expenses incurred by a person who is exempt from income tax but does not have health insurance. [13313/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Tax relief on health insurance contributions to authorised insurers is available under the tax relief at source system irrespective of whether the insured individual has a liability to income tax or not. Under the tax relief at source, the insured individual pays the subscription to the authorised insurer net of the standard rate of tax. The authorised insurer then gets payment of this amount from the Revenue Commissioners. The tax relief at source system works best where there are a small number of players involved. In the case of medical insurance there are just three main companies involved. Tax relief at source for medical expenses would be difficult to implement because of the number of service providers who would need to co-operate in order for such a scheme to work. There would also be a considerable Exchequer cost involved in extending a subsidy through the tax system to persons who are exempt from income tax.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 169: To ask the Minister for Finance his views on introducing a system of taxing offshore gambling on the basis that credit card companies and banks would be required to levy a percentage of all moneys paid to offshore gambling companies on the presumption that all individuals with an Irish credit card are tax resident unless notified specifically to the credit card company or bank that they are not by the Revenue Commissioners; and if he will make a statement on the matter. [13319/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Deputy will be aware that I have stated on numerous occasions that I would like to broaden the tax base applying to betting activity. Bets placed either online or over the phone are generally with out-of-State companies so applying betting duty is problematic. My officials, in conjunction with the Office of the Attorney General and the Office of the Revenue Commissioners, are looking at the scope to overcome legal and operational difficulties in this area. One such option, as the Deputy suggests, is to explore the capacity of financial companies such as credit card companies to facilitate the collection of betting duty. However, it is clear that there are serious legal difficulties surrounding the effective application of betting duty to bets placed online or over the phone which my officials are exploring on an ongoing basis.

Deirdre Clune (Cork South Central, Fine Gael)
Link to this: Individually | In context

Question 171: To ask the Minister for Finance the tax implications for a person in receipt of deserted wife's benefit payment. [13376/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The position is that Deserted Wife's Benefit payment is within the charge to income tax. The extent to which taxation actually arises in a given case depends on the amount of an individual's total income for tax purposes (including the deserted wife's benefit) in a tax year and the amount of tax credits to which that individual is entitled. I am informed by the Revenue Commissioners that if the Deputy has a particular case in mind and can provide the necessary details, they would be prepared to examine it should the Deputy so wish.