Written answers

Tuesday, 24 May 2016

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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117. To ask the Minister for Finance why the incapacitated child tax allowance is not automatically awarded to eligible taxpayers; if there is a provision for backdating this allowance; and if he will make a statement on the matter. [11687/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The legislation governing entitlement to the incapacitated child tax credit is contained in section 465 of the Taxes Consolidation Act 1997, as amended.  The legislation provides that an individual is entitled to the tax credit for a year if he or she proves that at any time during that year he or she had a child living who is under 18 years of age and is permanently incapacitated by reason of mental or physical infirmity, or if over the age of 18 years at the beginning of the year, is permanently incapacitated from maintaining himself/herself and had become so permanently incapacitated either before reaching 21 years of age or after that age while receiving full-time instruction at any university, college, school or other educational establishment.

A child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if that infirmity is such that, if the child were over 18, there would be a reasonable expectation that he/she would be incapacitated from maintaining himself/herself.

In order to establish entitlement to the credit in respect of any such child, medical evidence is required to confirm both the extent of the incapacity and whether the incapacity permanently prevents the child from being able in the long term to maintain himself or herself independently when over the age of 18 years. Once this confirmation has been provided in the initial claim, the credit continues to be awarded to the eligible taxpayer in subsequent tax years provided the conditions continue to be met.

Subject to compliance with the terms of section 465 of the Taxes Consolidation Act 1997, the granting of the credit may be backdated for up to four years.

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