Child benefit tax faces legal obstacle

TAXING child benefit could claw back over €300 million annually for the Government, but doing so leaves it open to a legal challenge.

The move is seen as being fairer to all families, but would have to overcome serious legal difficulties, as well as the absence of a database to match incomes with child benefit records.

The Irish Examiner has learnt that Social Protection Minister Joan Burton has been told by a special advisory group that over €300m could be generated for the exchequer if the welfare payment was taxed across the board.