Joanna Tuffy (Dublin Mid West, Labour)
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192. To ask the Minister for Finance the reason a person (details supplied) who lost their one parent family tax credit, changed tax bands as a result of the loss of this tax credit; and if he will make a statement on the matter. [7874/14]

Michael Noonan (Limerick City, Fine Gael)
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The new Single Person Child Carer Credit (SPCCC) is of the same value i.e. €1,650 per annum as the one-parent family tax credit and it also carries the same entitlement to the additional €4,000 extended standard rate band, which increases it to €36,800 per annum, before liability to the higher rate of income tax arises. However, the credit is more targeted, in that it is in the first instance, only available to the principal carer of the child. A system that allows multiple claims in respect of the same child or children is unsustainable. The change follows a recommendation from the Commission on Taxation that the credit should be retained but that it should be allocated to the principal carer only.

I am advised by the Revenue Commissioners that where Revenue had enough information, the new credit was given automatically and included in Tax Credit Certificates issued.  Where Revenue did not have such information the tax credit was not given.  The Revenue Commissioners placed advertisements in the national newspapers on January 6^th and 7^th to specifically bring this to the attention of affected taxpayers; who were advised to apply for the credit if they felt they were entitled to it.

As the person in question does not appear to be the primary claimant, the tax credit of €1,650 was removed from him and his standard rate band was reduced to the single persons level of €32,800.  If a primary claimant gives up the credit in favour of a secondary claimant, then the secondary claimant may claim the credit provided they satisfy the relevant qualifying criteria. The qualifying criteria are:

- the individual must not be married (unless separated), in a civil partnership (unless separated) or cohabiting;

- the individual must not be jointly assessed as a married person or civil partner or in receipt of the basic personal tax credit for a widowed person or a surviving civil partner; and

- the qualifying child must reside with the secondary claimant for at least 100 days on aggregate in the year.

In order to consider a claim from a secondary claimant, a completed form SPCC1 and signed declaration from the primary claimant is required. This will relinquish the primary claimant's claim to the tax credit and name the individual as the "secondary carer".  If the secondary claimant satisfies all the criteria he/she should then complete a form SPCC2 and forward both completed forms to his/her local tax office.  Following receipt of the completed forms, SPCC1 and SPCC2, the individual's claim to the Single Person Child Care Credit will be considered. 

In relation to the position regarding tax credits in respect of the person whom the Deputy has provided details, I am advised by the Revenue Commissioners that this credit has not yet been claimed by the taxpayer concerned.  If the taxpayer wishes to make a claim the forms SPCC1 and SPCC2 should be sent to his local tax office which is the South County District, Plaza Complex, Belgard Road, Tallaght, Dublin 24.

Joanna Tuffy (Dublin Mid West, Labour)
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193. To ask the Minister for Finance if parents who have joint custody of their children can share the single person child carer tax credit; and if he will make a statement on the matter. [7875/14]

Michael Noonan (Limerick City, Fine Gael)
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The new Single Person Child Carer Credit is of the same value as the one-parent family tax credit which it has replaced. However, the credit is more targeted in that it is, in the first instance, only available to the principal carer of the child. A system that allows multiple claims in respect of the same child or children is unsustainable. The change follows a recommendation from the Commission on Taxation that the credit should be retained but that it should be allocated to the principal carer only.

The Single Person Child Carer Credit is initially granted to the principal carer. This is usually the parent who receives the child benefit in respect of the child from the Department of Social Protection. Child benefit is only paid to one parent, even in cases where child care responsibilities are equally shared. Therefore, the extension of such practice to this tax credit is logical.

Notwithstanding the above, a principal carer can relinquish the new credit and associated extended standard rate band, such that it can be claimed by a secondary claimant provided certain conditions are met.

It would not be feasible to split the credit, within a tax year, between carers in a way that would take account of the many different caring scenarios in existence. There is no one size fits all solution that could be employed and the tax code cannot be constructed in such a way as to cater for every possible scenario. However, given the provisions that allow the credit to be relinquished, it is possible for a separated couple to agree that each party can claim the credit in alternate years provided the qualifying conditions are met.