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Seanad
‹ An tOrd Gnó - Order of Business

Family carers tax bills

Summary

Senator Ryan raises urgent concern about family carers receiving retrospective tax bills from Revenue, saying ordinary carers who saved the State money are being unfairly targeted.

I wish to raise a matter of urgent public importance concerning the deeply distressing situation facing tens of thousands of family carers across the State who are receiving retrospective tax bills from Revenue. In some cases, these bills date back years.

These are not high earners or tax avoiders. These are ordinary people, many elderly, many women and many caring full-time for a spouse, child, parent or loved one with a disability or a serious illness. These are people who stepped up when the State could not and who saved this country billions of euro through unpaid care, yet today they are being chased for thousands of euro in backdated tax. We are talking about carers who may be in their 70s or 80s receiving letters demanding payments of €5,000 to €6,000 or more. This is money they simply do not have and these are people who relied on these payments to survive, not knowing they had accumulated tax liability. These are carers who did not hide their income. They did not break the law; they followed the guidance they were given and trusted in the system. Now, because of the data sharing between the Department of Social Protection and Revenue, carers are being retrospectively penalised without warning, without adequate communication and without any compassion at all.

What makes this even more galling is the double standard. When Ministers in these Houses were overpaid, when allowances are miscalculated and expenses are wrongly claimed, nobody is chased years later and nobody is hit with interest, penalties or threatening letters, but when it comes to ordinary people who dedicated their lives to caring for people, suddenly they feel the full force of the State. It is one rule for those at the top and another rule for those who carried the burden of care on their backs.

Family carers are the backbone of our health and social care system and we all know that. Without them, our hospitals would collapse, our nursing homes would be overwhelmed and our disability services would simply grind to a halt. Instead of being thanked, they are now being hounded. The situation is causing huge distress, fear and anxiety for people. I have already been contacted by numerous carers who are terrified they might lose their homes or their savings or be forced into debt because of these retrospective demands. This is not the mark of a caring state whatsoever.

I ask for a debate on this issue with the Ministers for Finance and Social Protection, Deputies Harris and Calleary, as a matter of urgency. We need to have an immediate pause on all these retrospective bills. We need to review the Revenue's practice and we need to be serious when we are examining carers' payments and whether they should be tax exempt in recognition of the vital services they provide. Family carers deserve dignity, respect and fairness. They give their time, energy, health and lives to care for others. The least the State could do is not punish them for it.

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