asked the Minister for Defence if he is aware that a number of members of the Defence Forces in Clonmel were informed by their officers that income tax would be deducted from their pay; and that such members had not at any time been required to complete income tax forms nor been warned that they were to be assessed for income tax; and if he will take immediate steps to investigate this matter and to ensure that no member of the Defence Forces has income tax deductions made without being given the opportunity to complete forms for PAYE in the normal manner.
Ceisteanna—Questions. Oral Answers. - Income Tax Deductions from Army Pay.
71.
My Department's functions with regard to income tax payable by members of Na Fórsaí Cosanta are to furnish pay returns to the Revenue Commissioners as soon as possible after the end of each financial year, to collect the assessed income tax within the financial year in which the assessments are received from the Commissioners, and to pay to the Commissioners the amounts so collected.
In the preparation of the 1964-65 returns, it became apparent to my Department that many non-commissioned officers and men would be liable for income tax for the first time, or would have higher assessments than in previous years, because of the substantial pay increases granted early in 1965 with retrospective effect. Accordingly in May, 1965 and again in July when it was noticed that many non-commissioned officers and men had not paid attention to the previous intimation, all Commanding Officers were instructed to give their non-commissioned officers and men, from particulars supplied to them, an indication, of the amount of income tax for which they might be liable and to tell them that the Department would facilitate them in building up credits in their pay accounts towards payment of the tax when the assessments were received from the Revenue Commissioners. Income tax forms were sent, through their Commanding Officers, to all non-commissioned officers and men who appeared to be liable, with, on each form, a note of the individual's income from the Vote for Defence for the previous financial year. I am informed that this procedure was followed in Clonmel as in all other posts.
I may add that the PAYE system does not apply to members of the State services.
Is the Minister not aware that all particulars of serving personnel, including family, etc. are already in the possession of the Department, and if the Department wanted to do so, they could, within a few days, get the necessary forms completed? Does he not admit that this is a continuation of the system adopted by other Government Departments of waiting until a few weeks before Christmas and then starting to deduct income tax in large amounts and relieving these people of very necessary money around the Christmas period? It is a stupid practice.
I have already stated that this is a matter between the individual and the Income Tax Commissioners, and each person fills in his own form.
The Minister knows quite well that is not so, that any deductions being made are made by his Department and made at local level. All they have to do is to deduct the money that is due, and they must know how much is due.
Every person makes his own claim for exemption in regard to income tax.
Obviously the Minister did not serve in the modern Army or he would know they do not get much chance to make any arrangements.