asked the Minister for Finance if he is aware that the Revenue Commissioners so interpret the Rules of Schedule E. in the payment of Income Tax that no refunds are made on a portion of income earned outside the P.A.Y.E. period; and if he will take steps to ensure that this interpretation is changed.
Ceisteanna—Questions. Oral Answers. - Income Tax Refunds.
3.
I am not clear as to what precisely the Deputy has in mind.
Under Pay As You Earn, tax is deductible from all emoluments paid subsequent to the 5th October, 1960, irrespective of the period in which the emoluments were earned. So far as the year 1960-61 is concerned, the exact liability is calculated by reference to the amount of the emoluments earned in that year, and an abatement amounting to one-half of that liability is then granted. All of the tax deducted between the 6th October, 1960, and the 5th April, 1961, is credited against the net liability for 1960-61. If there has been an overdeduction, the excess is refunded; and if the tax deducted was insufficient the amount of the underdeduction is subsequently recovered.
If the Deputy will let me have particulars of any specific case where difficulty has arisen, I shall have inquiries made.