Seán Kyne (Galway West, Fine Gael)
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311. To ask the Minister for Finance if he is aware that the operation of the single-person child carer tax credit, which replaced the one-parent family tax credit, has negatively impacted on some parents, who share custody and parenting responsibilities; and his views that the rules of the new tax credit are at odds with promoting parental responsibility and equality among different family structures. [15808/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) has been replaced with the Single Person Child Carer Credit since 1 January 2014.   However, the new credit is more targeted in that it is, in the first instance, only available to the primary 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.

The Commission on Taxation acknowledged that the previous One Parent Family Tax Credit played a role in supporting and incentivising the labour market participation of single and widowed parents.  However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the primary carer only. The restructuring of the credit achieves such an outcome.

The person who cares for the child for most of the year is entitled to the credit in the first instance. Agreement as to who will be the primary carer of a child is a matter for the parents or guardians. However, only the primary carer is entitled to the credit.

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), on the basis that the relevant child is not, in the main, being cared for by a single person. 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.

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.

While I understand the difficulties being experienced by those that cannot avail of the SPCCC, I am satisfied that the credit targets limited Exchequer resources to where they are needed most. In addition, it is not a function of the tax system to incentivise shared custody and shared parenting responsibilities.