Richard Bruton (Dublin North Central, Fine Gael)
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Question 3: To ask the Minister for Finance if payment by the Health Service Executive to service providers such as fostering, home help and so on are treated as tax free income; and if so, if there are ceilings on the amount of tax free income that can be earned from such sources. [24967/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I understand matters, the Deputy's Question relates to payments to individuals.

The position is that section 192B of the Taxes Consolidation Act 1997 provides that payments made to a foster parent by the Health Service Executive (HSE) in accordance with Article 14 of the Child Care (Placement of Children in Foster Care) Regulations 1995 are exempt from tax.

Section 192B of the Taxes Consolidation Act 1997 also provides, subject to certain conditions being fulfilled, for a tax exemption in respect of payments made at the discretion of the HSE to a foster parent in respect of a 'child' aged 18 or over.

Corresponding payments relating to foster children made in accordance with the law of another EU member state are also exempted under the provision.

There is no ceiling on the amount of tax-free income that may be exempt under section 192B of the Taxes Consolidation Act 1997.

Section 192B tax exemption does not extend to payments to a 'home help'. Payments made by the Health Service Executive to a 'home help' are taxable in full subject, of course, to liability to tax being reduced by virtue of the home help's personal tax credits.