Child benefit tax could raise three times as much as cut

Taxing child benefit would rake in nearly €400m for the Exchequer — three times as much as is being raised by universal cuts to the allowance.

Finance Minister Michael Noonan has said there are “very well-established data arrangements” in place between Revenue and the Department of Social protection which could eventually be used to tax child benefit.

Data from Mr Noonan reveals €395m could be collected next year from families or parents in receipts of the allowance whose income would be assessed.