Simon Harris (Wicklow, Fine Gael)
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Question 118: To ask the Minister for Finance the reason no tax reliefs are offered to parents who pay for their children to attend public third level institutions, as opposed to parents paying for their children to attend private third level institutions; if his attention has been drawn to the inequities that this distinction raises; his plans to introduce a tax relief scheme towards the costs of the student registration fees paid by persons at public third level institutes; and if he will make a statement on the matter. [37400/11]

Michael Noonan (Limerick City, Fine Gael)
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Section 473A of the Taxes Consolidation Act 1997 provides for tax relief at the standard rate of income tax for qualifying fees paid by an individual in respect of a third level education course including a postgraduate course. Qualifying fees means tuition fees in respect of an approved course at an approved college and includes what is referred to as the "student contribution". For the tax year 2011 and subsequent tax years, the maximum annual amount eligible for tax relief (including the student contribution of €2,000) is €7,000 per course.

Currently, undergraduate college fees at public institutions are free in Ireland, apart from the student contribution. The tax relief is confined to tuition fees only. Tuition fees that are, or will be, met directly or indirectly by grants, scholarships, employer contribution or other means are to be deducted in arriving at the net fees qualifying for tax relief.

An individual can claim tax relief on fees paid by him/her in respect of an approved third level course pursued by him/her and on fees paid by him/her in respect of an approved course pursued by other individuals (e.g. a son or daughter).

A claim for relief may be in respect of a number of students – the maximum amount allowable (i.e. €7,000) applies per course rather than per claim. However:

- the first €2,000 of all fees claimed by an individual does not attract tax relief where any one of the students to whom the claim refers is a full time student;

- the first €1,000 of all fees claimed by an individual does not attract tax relief where all of the students to whom the claim refers are part-time students.

These thresholds apply regardless of whether the student attends a private or public third-level institution.

All tax reliefs and incentives are subject to regular review as part of the annual Budget and Finance Bill planning process. Any decisions taken by the Government in this regard are usually announced on Budget Day.