Written answers

Tuesday, 21 March 2017

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
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179. To ask the Minister for Finance the details of the incapacitated child tax credit and the dependent relative tax credit; the conditions necessary for a person to apply and the amount available; and if he will make a statement on the matter. [12932/17]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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182. To ask the Minister for Finance the uptake levels of the incapacitated child tax credit; his views on the need for a public awareness campaign to improve the uptake of this tax credit; and if he will make a statement on the matter. [13092/17]

Photo of Margaret Murphy O'MahonyMargaret Murphy O'Mahony (Cork South West, Fianna Fail)
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222. To ask the Minister for Finance the number of persons availing of the incapacitated child tax credit for each of the years 2011 to 2016 and to date in 2017. [13546/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 179, 182 and 222 together.

The incapacitated child tax credit and the dependent relative tax credit are two separate and distinct tax credits. 

The entitlement to the incapacitated child tax credit is provided for in section 465 of the Taxes Consolidation Act (TCA) 1997 (as amended).  This tax credit is €3,300 per qualifying child for 2017 and a taxpayer is entitled to the tax credit for a year if it is proven that he or she had a permanently incapacitated living child:-

- under 18 years of age, or

- over 18 years who is permanently incapacitated from maintaining himself/herself and became permanently incapacitated either before reaching 21 years, or had become so incapacitated after reaching the age of 21 years but while receiving full-time instruction at any university, college, school or other educational establishment.

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

As regards a public awareness campaign to improve the uptake of the incapacitated child tax credit, I am advised by Revenue that they have regular contact with relevant Government bodies and agencies, and voluntary bodies, about the incapacitated child tax credit.  Those contacts include regular updating of information to the Citizens Information Board for their website Citizensinformation.ie.  Those updates include information about the credit, the conditions for claiming the credit, how to claim it and the necessary supporting evidence required. The approach towards raising awareness of the incapacitated child tax credit is in keeping with other initiatives undertaken by Revenue to publicise taxpayers' entitlements to tax credits and reliefs which included sending a targeted, written reminder, late last year, to almost 140,000 taxpayers who had not claimed any additional tax credits in the previous four years. Revenue is always open to exploring ways in which awareness of the credit may be increased. 

In relation to the trend in the number of persons availing of the incapacitated child tax credit for the years 2011 to 2017, I am advised by Revenue that the trend in the number of claims, and associated costs, for the incapacitated child tax credit is available in the Costs of Tax Expenditures Table on the Revenue Statistics webpage at

.

The information provides an annual breakdown of the cost to the Exchequer and the associated numbers claiming the "Additional Credit for Incapacitated Child" for the years 2004 to 2014; which are the years for which complete PAYE and self-employed income tax filing data are available.  The published information will be updated in due course as newer data, including from the 2015 Form 11 for self-employed cases, is available. However, despite the absence of complete information for 2015 onwards, Revenue has also advised that there is more timely information available on claims in respect of PAYE taxpayers in employment.  That data reflects the number of PAYE taxpayers with the incapacitated child tax credit on their record, irrespective of whether the taxpayer has the earning capacity to use some or all of the credit.

The comparison of the published website data (PAYE and self-employed taxpayers who have used all or some of the incapacitated child credit) up to 2014, and provisional data for PAYE taxpayers only up to 2017, is as follows:

YearPAYE taxpayers in employment with the credit on their recordPAYE and self-employed taxpayers: claims giving rise to a cost to the Exchequer  (years for which complete data is available)
201314,68217,700
201415,29220,300
201515,673
201615,890
201715,893

The entitlement to the dependent relative tax credit is provided for in section 466 of the TCA 1997. 

The dependent relative tax credit is €70 for 2017.  However, if the income of the dependent relative exceeds the maximum amount payable for the State Pension (Contributory) plus an additional €280 in the year of assessment, which amounts to €14,504 for 2017, there is no entitlement to the credit. 

The conditions for entitlement to the tax credit are that an individual must prove that he or she maintains, at his/her own expense, a:

- relative, including a relative of his spouse or civil partner, who is unable due to old age or infirmity to maintain him/herself,

- widowed parent of the claimant or of the claimant's spouse or civil partner, whether incapacitated or not, or

- son or daughter, or a child of his/her civil partner who resides with the claimant and on whose services the claimant is compelled to depend on due to old age or infirmity.

The dependent relative tax credit cannot be claimed for a child if the incapacitated child tax credit is claimed. The dependent relative tax credit continues to be awarded to the eligible taxpayer in subsequent tax years provided the conditions continue to be met.

Details in the respect of the number of claims, and associated costs, for the dependent relative tax credit are available in the Costs of Tax Expenditures Table on the Revenue Statistics webpage at .

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