Róisín Shortall (Dublin North West, Independent)
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To ask the Minister for Finance the cost to the Exchequer of allowing tax relief at the marginal rate in respect of income protection policies. [7354/13]

Michael Noonan (Limerick City, Fine Gael)
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Section 471 of the Taxes Consolidation Act 1997 provides relief in respect of premiums paid to a bona fide permanent health benefit scheme. The relief is confined to an amount not exceeding 10 per cent of the individual’s total income for any tax year. Where the premium is paid by an individual’s employer and is taxed on the individual as a perquisite, the premium is treated as having been paid by the employee and qualifies for relief. The relief is given as a deduction from total income. Tax relief is, therefore, effectively allowed at the taxpayer’s marginal tax rate. While part of the cost of contributions to permanent health benefit schemes is not identifiable as a result of a move to a “net pay” basis of contributions by PAYE taxpayers from 6 April 2001, I am advised by the Revenue Commissioners that the identifiable cost to the Exchequer for the income tax year 2010, the most recent year for which the necessary detailed historical information is available, is estimated at €3.9 million.