Cormac Devlin (Dún Laoghaire, Fianna Fail)
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292. To ask the Minister for Finance if he will cost the annual Exchequer impact of increasing the guide-assistance dog allowance from €825 to €1,250; and if he will examine index-linking this allowance from 2026; and if he will make a statement on the matter. [47919/25]

Cormac Devlin (Dún Laoghaire, Fianna Fail)
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293. To ask the Minister for Finance if he will consider permitting medical expenses tax relief on verified veterinary bills associated with accredited assistance dogs in addition to the current allowance; if he will publish costings for annual caps of €1,000 and €1,500 per claimant; and if he will make a statement on the matter. [47920/25]

Cormac Devlin (Dún Laoghaire, Fianna Fail)
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294. To ask the Minister for Finance if he will examine the introduction of a refundable tax credit for assistance-dog insurance premiums and mandatory recertification costs, including costings for caps of €300 and €500 per annum; and if he will make a statement on the matter. [47921/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 292, 293 and 294 together.

Tax relief for costs relating to assistance dogs may currently be available under section 469 of the Taxes Consolidation Act (“TCA”) 1997. Section 469 TCA 1997 provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses. Only “health expenses” incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a “practitioner”, will qualify for tax relief.

Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”. Health expenses are defined as “expenses in respect of the provision of health care” and include "expenses representing the cost of maintenance or treatment necessarily incurred in connection with the services of a practitioner".

The definition of practitioner includes a number of medical professionals, including a person registered in the register established under section 43 of the Medical Practitioners Act 2007.

If an individual is required to use a trained assistance dog, and this is advised by a practitioner, tax relief may be claimed as a health expense. The individual may be eligible to claim tax relief on the maintenance costs referrable to the keeping and use of such a trained assistance dog. This treatment applies in all cases where the relevant conditions are met and there is no monetary limit.

Separate from the general position outlined above, a Revenue administrative practice permits a flat rate allowance to be claimed in certain circumstances. If a person maintains a trained assistance dog, a sum of €825 (which is the equivalent of a tax credit of €165) may be claimed as a health expense.

To qualify for income tax relief in respect of an assistance dog an individual must prove that he or she maintains a trained dog which has been supplied by an organisation accredited by Assistance Dogs Europe (ADEu).

In relation to question 47919/25 I am advised by Revenue that increasing the guide dog allowance and the assistance dog allowance by €425, resulting in an increase in those tax credits by €85 each, would cost an estimated €0.02m and €0.03m respectively.

For both 47920/25 and 47921/25 it is assumed that for costings the Deputy is referring to the introduction of an additional allowance/credit available to taxpayers who are availing of the flat rate allowance and who are not making claims for tax relief under general health expenses for the expenses incurred. It is also assumed that the additional allowance/credit would not operate as a flat rate, but rather would depend on the expenditure incurred, as the Deputy refers to a cap on the relief.

In relation to question 47920/25, I am advised by Revenue that whilst it does not capture data which would allow them to quantify the level of medical expenses incurred by taxpayers claiming the flat rate allowance in relation to assistance dogs, it is possible to estimate a cost using the caps proposed. It is assumed that the caps of €1,000 and €1,500 refer to a cap on the relief claimed, and that the caps would result in a tax credit of €200 and €300 respectively (at a rate of 20%). Based on the uptake of the flat rate allowance in 2023, the latest year available, the estimated tax cost is €0.07m and €0.11m respectively. These costings do not account for behavioural effects.

In relation to question 47921/25, I am advised by Revenue that it does not capture data which would inform them as to the number of taxpayers claiming the flat rate allowance in relation to assistance dogs who are paying for insurance premiums. However, it is possible to estimate a cost, assuming that all claimants of the flat rate allowance in relation to assistance dogs would be eligible to and would claim the proposed credit, and that all claimants would be eligible to claim the maximum credit of €300 and €500.

Based on the uptake of the flat rate allowance in 2023, the latest year available, the estimated tax cost is €0.11m and €0.18m respectively. These costings do not account for behavioural effects.

Further information on assistance dogs for adults and children can be assessed at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/assistance-dogs/index.aspx.

With respect to refundable tax credits my Department has examined them in the Tax Strategy Group (TSG) process in advance of Budget 2024, and the analysis and findings of the review were published in the Income Tax TSG paper, which is available on the Department of Finance’s website at the following link: www.gov.ie/pdf/?file=

Overall, the review identified a number of issues concerning refundable tax credits. Introducing such credits would represent a fundamental change to the personal tax system. It could also potentially prove to be very costly and provide relatively little benefit to the majority of individuals, including those working full time and earning at least the national minimum wage because such workers generally fully utilise their tax credits. Implementing a system of refundable tax credits would result in operational and administrative complexities as well as potentially reducing eligibility for some existing supports for low income households.

Finally, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.