Tom Fleming (Kerry South, Independent)
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233. To ask the Minister for Finance if he will review the budget change in respect of tax relief credits for single parents, as it discriminates and means a cut of €32 per week for the non-primary carer or €1,650 per annum and this is most unreasonable, unfair and unjust; if he will take into consideration that thousands of non-primary carers are care sharing two or three days every week and are paying maintenance; and if he will make a statement on the matter. [4337/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit has been restructured and replaced with a new Single Person Child Care Tax Credit from 1 January 2014.   However, the credit will be more targeted, in that it will in the first instance, only be available to the principal carer of the child. 

Given the difficult fiscal environment, it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socioeconomic objectives that are set for them.  A system that allows multiple claims in respect of the same child or children is unsustainable.

There is no specific tax credit for children in the tax code. Therefore, married or cohabiting couples are unable to avail of any additional credit to assist them in the financial maintenance of their children.  In certain cases, such couples also need to maintain two households due to the location of employment, for example.

It is the responsibility of the parents to look after a child including financially.  The new credit is targeted to assist principal child carers to take up, or remain in employment. It should not be considered merely as a supplementary source of income, or an alternative to the financial support of a parent.

Similarly, maintenance payments are a matter for parents and if necessary, the courts to decide. It is not possible, and indeed would not be appropriate, for the tax code to take account of every possible variable.

Notwithstanding the above, as a result of an amendment which I brought forward at Committee Stage of the Finance Bill, a primary carer who is entitled to the credit and who does not wish to avail of it can choose to surrender it.  A secondary carer may then make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year.  It should be noted that where a primary carer is married, in a civil partnership or cohabiting they would not be entitled to the new credit (or indeed the former one). In such circumstances the primary carer cannot relinquish the credit to a secondary carer. In addition, a secondary carer who is married, in a civil partnership or cohabiting, would not be entitled to the new credit (or indeed the former one) regardless of the marital status of the primary carer.

This measure was approved by the Oireachtas and enacted in Finance (No. 2) Act 2013 only last month. I have no plans to review Government policy in this matter.