WOMEN IMPACTED BY the CervicalCheck scandal will be exempt from income tax and inheritance tax on any monies received in relation to the screening programme. 

The announcement was made by Finance Minister Jack Chambers as part of Budget 2025.

He said the move is another element “of the State’s response to the failures of the CervicalCheck screening programme”.

Those affected will not have to pay income tax, capital gains tax, or capital acquisition tax on the payments (or gains from investments arising from those sums of money) made to them. 

“Future and historic income or gains arising to these women from the investment of CervicalCheck payments will also be exempt from the relevant taxes,” Chambers said. 

CervicalCheck came under the microscope in April 2018, when it was revealed that some women diagnosed with invasive cervical cancer were not told that their previous smear tests had been reviewed.

The 221 women affected – or their families, in the cases of women who had since died – were not informed that the review concluded a different action could have been taken, either for another smear test, a smear at an earlier stage, or a cytology examination.

Payments made under the non-disclosure, ex-gratia scheme have never attracted income tax liabilities. 

Speaking to The Journal today, however, Chambers said that there have been examples in the past where people have been taxed in relation to such payments. 

He says the exemption principle will be followed for future ex-gratia schemes, such as what will be put in place for Stardust families.

“I personally believe that we shouldn’t be subjecting victims of wrongdoing to our tax system as a matter of principle,” he explained. “That’s what has happened in the past and as Minister for Finance, as long as I’m in office, I’ll make sure it doesn’t happen in the future.”

Law firm Eversheds Sutherland issued advice on its website last month to highlight an “incorrect assumption” that “all funds arising from damages payments and compensation payments are exempt from Irish tax”. 

“No such blanket exemption exists, and each scenario should be looked at on its merits, with the tax treatment generally following the underlying subject matter of the litigation, and how any relevant settlement agreement has been drafted,” the company said. 

“In general, any sum obtained by means of compensation or damages for any wrong or injury suffered by an individual shall not be classified as a chargeable gain and therefore will not be subject to capital gains tax in Ireland. However, any income arising from the investment of such compensation or damages payments would be subject to income tax.”

Clarification: A previous version of this article did not make clear that the exemptions related to payments made as a result of CervicalCheck failures.