Michael McGrath (Cork South Central, Fianna Fail)
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219. To ask the Minister for Finance if taxpayers will benefit from the new water charge tax credit at source as occurs with medical insurance relief or if they will be required to claim the tax credit in arrears; and if he will make a statement on the matter. [40106/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I announced in the Budget that tax relief for water charges will be introduced. Relief will be available at the standard rate of 20% on water charges paid, up to a maximum of €500 per annum, which may result in tax relief of up to €100.

The tax relief will be provided to whoever pays the bill. This will enable, for example, adult children who pay for elderly parents to receive the relief.  The relief will be available in the year following that in which the charge applied.

My officials, in conjunction with the Revenue Commissioners, are still working on the precise details of the application process that will be implemented, but I can confirm that tax relief is unlikely to be provided at source.

Michael McGrath (Cork South Central, Fianna Fail)
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220. To ask the Minister for Finance if a person who is not fully exhausting their current tax credits by virtue of their current income level will not receive any benefit from the water charge tax credits even if they pay their bill in full; and if he will make a statement on the matter. [40107/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I announced in the Budget that tax relief for water charges will be introduced.  Relief will be available at the standard rate of 20% for water charges paid, up to a maximum of €500 per annum, which may result in a tax relief of up to €100.

By its very nature, a tax relief is only available to those who have a tax liability. In order to assist those with low, or no, tax liability, the relief will be provided to whoever pays the bill. This will enable, for example, adult children who pay for elderly parents to receive the relief.  The relief will be available in the year following that in which the charges were paid.

It is also worth nothing that the Department of Social Protection will provide additional assistance in respect of water charges to those in receipt of the household benefits package or the fuel allowance.