Noel Ahern (Dublin North West, Fianna Fail)
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Question 83: To ask the Minister for Finance if he will clarify his position in relation to entitlement to PAYE tax allowance or tax credit; the difference in treatment of tax credits for pensions in cases of pensioner couples, each on separate social welfare pension plus occupational pension; if each is entitled to separate PAYE tax credit; the difference in treatment of tax credits for pensioners in cases of pensioner couples when one of whom is a qualified adult on their spouses pension book; and if each is entitled to separate PAYE tax credit. [20747/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the PAYE tax credit is due against a variety of sources of income including occupational pensions and pensions payable under the Social Welfare Acts. However, irrespective of the number of sources of income against which the PAYE tax credit may be due, an individual is entitled to only one PAYE tax credit (currently €1,830) per annum.

As regards a pensioner couple where each spouse is in receipt of a separate social welfare pension plus an occupational pension, each spouse is entitled in their own right to the PAYE tax credit. As regards a pensioner couple where one spouse is a dependant 'qualifying adult' on the other spouse's pension book, the PAYE tax credit is due only to the spouse who has an entitlement to the pension and a separate PAYE tax credit is not due in respect of that element of the pension payable in respect of a dependant 'qualified adult'.

Michael Creed (Cork North West, Fine Gael)
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Question 84: To ask the Minister for Finance if a person (details supplied) in County Cork will be approved for an incapacitated child credit; and if he will make a statement on the matter. [20801/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised by the Revenue Commissioners that, in response to the person's claim dated 9th March 2009, they issued a request for a doctor's certificate outlining the nature of the child's illness. The certificate has not yet been received. I would suggest that if the individual wishes to pursue the claim, the person to contact is Mr. Pearse Penney, Revenue House, Blackpool, Cork. Telephone 021 6027266.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy's question refers to taxes on income and accordingly I will address my reply to income tax, PRSI and income and health levies. Persons aged 70 years and over are not liable to pay health levy contributions and PRSI contributions are not payable by persons aged 66 and over. They are however subject to income tax on their taxable income and to income levy on their aggregate income unless this income qualifies for specific exemptions provided for in the legislation relating to these taxes.

With regards to income tax, a person aged 65 years or over is exempt from income tax if his or her income does not exceed €20,000 for a single person or €40,000 for a married couple (in the case of a married couple this treatment will also apply if one spouse is under 65 years and the other is aged over 65 years). These thresholds are increased if the person has dependent children. In cases where it is more favourable, a marginal relief system is available for incomes rising slightly above these thresholds where 40% is applied on all income above the threshold. If a person's income is in excess of these thresholds and not on marginal relief, income tax is chargeable on the person's taxable income, or in the case of a married couple on the couple's joint taxable income, with the tax due being reduced by the amounts of any tax credits (including age credit) due to the person or the couple.

In relation to the income levy, a person aged 65 years and over will not have a liability to income levy if he or she meets any of the following conditions – · The person has an entitlement to a full medical card for any part of the tax year, or · The person's aggregate income for the tax year, excluding social welfare payments, is less than €20,000 for a single person, €40,000 for a married couple.

Married couples, where one or both are aged 65 years or over, whose combined income does not exceed €40,000 are entitled if they have had income levy deducted from their income, to make a claim to Revenue after the end of the tax year for a refund of all income levy deducted.

In addition to social welfare payments, or similar type payments from other departments, being disregarded for income levy purposes, a number of other income sources that have been provided with a specific exemption from income tax are also exempted from the income levy. A list of these exempt sources is set out in Appendix B of the Frequently Asked Questions document on the income levy which is available on the Revenue website at http://www.revenue.ie/en/spotlights/income-levy.html.

Michael McGrath (Cork South Central, Fianna Fail)
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Question 86: To ask the Minister for Finance if the income levy applies to an investment product (details supplied). [20852/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy does not apply to tracker bonds. These products are currently subject to Deposit Interest Retention Tax (DIRT) at 28% on the interest paid on the date of the maturity payment.