asked the Minister for Finance if he is aware that income tax payers who appeal their assessments, unless they give a guarantee that they will give a substantial payment on account on 1st January, 1972, will be liable to interest on the full amount of the tax ultimately found to be due, even thought the payment on account may not have been agreed on by the two parties.
Ceisteanna—Questions. Oral Answers. - Income Tax.
19.
The Income Tax Acts provide that, notwithstanding that an appeal has been made against an assessment to income tax, the tax charged in the assessment carries interest from the statutory due date as if there were no appeal against the assessment. The interest charge may, however, be avoided.
Where an assessment is under appeal, the taxpayer and the inspector of taxes may come to an agreement as to the amount of the payment to be made on account. Where this is done and (a) the payment on account is made within two months from the due date and (b) the balance of the tax found to be due on determination of the appeal is paid within two months from the date of the determination, no interest whatever is payable in respect of the tax.
Furthermore, where an agreement has not been reached between the taxpayer and the inspector, if a payment, which proves to be at least 80 per cent of the tax ultimately found to be due on determination of the appeal, is made by the taxpayer within two months from the due date and the balance of the tax found to be due is paid within two months from the date of the determination, no interest is payable.
If it transpires that the payment on account made by the taxpayer is in excess of the tax ultimately found to be due he is refunded the tax plus interest at the same rate—that is, .75 per cent per month—as interest charged on late payments.
Question No. 20 postponed.
21.
asked the Minister for Finance the tax free allowance for a man and his wife; when it was fixed at its present rate; and if he proposes to increase it.
The personal income tax allowance for a married man amounting to £424—£524 for the year of marriage—together with the appropriate earned income relief constitute the main elements in the tax-free allowances. While earned income relief varies with the amount of earnings the minimum amount of relief for a married man is £250. The effect of this taken together with the personal allowance of £424 is that a married man with earnings of £674 a year is not liable to tax. If he pays social welfare contributions he is entitled to claim a further deduction of £18 bringing the tax-free earnings to £692.
The personal allowance of £424 and the minimum earned income relief of £250 were raised to their present levels in 1969 and 1971 respectively. The question of further increasing these allowances is a budgetary matter which will receive consideration at the appropriate time.
Does the Minister not consider this allowance, which is approximately £13 or £14 per week, entirely inadequate with the present cost of living for a married man?
This is a matter that must be considered in the entire budgetary context.
Would the Parliamentary Secretary say it is correct that when the increased allowance was given to the low-paid people this year it was on a standard rate deduction, not on 5s 3d —it was on the 7s deduction?
That is a separate question. I think I have given the answer in great detail.
The Parliamentary Secretary included the information that this extra allowance was given but I am giving him the extra information, if he does not know, that it was on the 7s.
Did the Parliamentary Secretary not read out a lot of stuff that had no relevance to the question he was asked? He was asked a simple question——
And gave a simple and precise answer.
Eventually, yes, having read out a lot of stuff that had no relation to the question. The fact is that there has been a disgraceful method of applying income tax in this country since 1959 when PAYE came into operation. What about the small concession that was given in 1970 and taken away in 1971? He did not tell us about that.
I am aware of an increase in the allowance from a different source from that of the Deputy.
(Interruptions.)
I was talking about the information which was given and which was not asked for and which was given at great length by the Parliamentary Secretary. I think everybody knows the income tax allowances are a disgrace.