Written answers

Tuesday, 8 July 2014

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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198. To ask the Minister for Finance when the advisory group on tax and social welfare will publish its report on increasing the incentives for persons to return to work; and if he will make a statement on the matter. [29632/14]

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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199. To ask the Minister for Finance if the Revenue Commissioners have undertaken any estimate of the projected cost to the Exchequer of establishing the necessary administrative system to facilitate the refund of tax credits; if the Revenue Commissioners or his Department have carried out a study of the amount a refundable tax credit system for low paid workers would cost assuming a suitable qualification period of work; if not, if he will carry out such a study; and if he will make a statement on the matter. [29633/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 198 and 199 together.

The Deputy is advised that the Advisory Group on Tax and Social Welfare (AGTSW) are considering a range of tax and social welfare issues, with a view to increasing the incentives for individuals to return to work. I understand that one of the issues the Group have examined relates to refundable tax credits. It is expected that the Group will publish its report later this summer and I anticipate its recommendations will a form useful addition towards informing upcoming budgetary deliberations.

Without any new policy decision or direction on this issue, Revenue has not undertaken any estimate of the projected cost to the Exchequer of establishing the necessary administrative system to facilitate the refund of tax credits. However, it should be borne in mind that under the terms of the Stability and Growth Pact, until Ireland has reached its objective of a balanced budget in structural terms, we may not introduce discretionary revenue reductions unless they are matched by other revenue increases or expenditure reductions. This means that Government must consider carefully any tax changes as any reductions will have to be offset elsewhere.

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