Vol. 489 No. 7
187 Ms Shortall asked the Minister for Finance the reason the Revenue Commissioners do not treat cohabiting couples the same as married couples; the reason policy in this area is not in line with the policy of the Department of Social, Community and Family Affairs; and if he will make a statement on the matter. [9667/98]
There are no special income tax allowances for unmarried couples living together. In this context, tax law follows the general law relating to marriage. The basis on which the married person's tax free allowance, and double rate bands, is given derives from the Supreme Court decision in Murphy v. Attorney General (1980) which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together.
While the social welfare treatment of married and cohabiting couples is primarily a matter for the Minister for Social, Community and Family Affairs, I should explain in the Hyland case in 1989 the Supreme Court held that it was unconstitutional for the relevant social welfare provisions to treat a married couple living together less favourably than an (unmarried) cohabiting couple. This judgment has been given effect by treating cohabiting couples in the same way as married couples for social welfare purposes.
I am conscious of the difficulties which can arise for cohabiting couples in certain circumstances. An interdepartmental working group has been set up under the Department of Social, Community and Family Affairs to examine the treatment of married, cohabiting and one-parent households under the tax and social welfare codes. This group is due to report by the middle of this year.
