Written answers

Wednesday, 12 December 2012

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Finance the average and median individual amount of increased taxation in comparison to pre-July 2013 levels that women on maternity benefit will pay after July 2013 in a full tax year; and if he will make a statement on the matter. [55760/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the statistical information used to estimate the yield from taxing maternity benefit in 2013 is not sufficiently detailed to provide a reliable basis for ascertaining the precise information requested by the Deputy. However, I would point out that as a result of Maternity Benefit becoming taxable for all claimants with effect from 1 July 2013, three possible tax outcomes could arise:

1. An individual will pay no income tax on their maternity benefit as their tax credits will be sufficient to reduce their tax liability to zero.

2. An individual will pay tax on their maternity benefit at the standard rate of tax.

3. An individual will pay tax on their maternity benefit at the higher rate of tax.

Different Cases
Maternity Benefit
Tax liability on Maternity Benefit
Case 1 No tax due
€6,812
Nil
Case 2 (taxed at 20%)
€6,812
€1,362
Case 3 (taxed at 41%)
€6,812
€2,793

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