John Curran (Dublin Mid West, Fianna Fail)
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127. To ask the Minister for Finance the reason the relief granted to resident and non-resident persons with a non-resident spouse in respect of the non-resident aggregation relief tax credit can be greater than the relief that would be granted on the basis of joint assessment to a tax resident couple; his views on whether this is fair; if he will review the issue; and if he will make a statement on the matter. [35850/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Further to the reply to Question No. 119 of 13 July last, which provided a detailed answer to the Deputy setting out the operation of this relief, I am advised by Revenue that the relief operates where a married couple comprises one individual who is tax-resident in Ireland and one who is tax-resident in another jurisdiction. The relief serves to ensure the taxation of the portion of the couple’s combined income that is attributable to the tax resident individual is not greater than it would have been if both spouses were resident for tax purposes. The issue of a direct comparison of the tax outcome of a tax resident couple does not arise as the income of the non-resident individual will, in general, be taxable in the jurisdiction of residence.

This relief was introduced in recognition of the decisions of the Supreme Court in the cases of Murphy v. Attorney General (1982) and Muckley v. Ireland (1985) confirming the constitutional prohibition on any discrimination against the family in the tax code.

If the Deputy is aware of particular instances of unfairness or inconsistency arising from the application of the relief, or any instance of abuse of the relief, he should bring the matter to the attention of Revenue who will investigate fully.