asked the Minister for Finance when he intends to have the facilities for PAYE taxpayers improved in Kilkenny; and if he will provide accommodation for these people to discuss their tax problems in private.
Ceisteanna—Questions. Oral Answers. - Kilkenny PAYE Facilities.
15.
Arrangements have already been made between the Revenue Commissioners and the Office of Public Works for the provision of additional accommodation in the office of the Inspector of Taxes, Kilkenny. These arrangements will also provide for improved facilities for taxpayers to discuss their tax affairs in private.
Could the Minister explain the details of the new accommodation?
I understand that arrangements are being made to adapt that portion of the Garda barracks in Kilkenny to house the customs and excise staff who are in the same building as the income tax people at present and that this will provide additional accommodation for the taxes staff and also the facilities that I mentioned. I may add that the work will take, perhaps, up to six months to complete.
16.
andMr. G. Lynch asked the Minister for Finance whether persons in receipt of State pensions amounting to approximately half the amount payable to them during employment, are required to pay income tax at the same rate applicable to those still in employment; and, if so, whether it is intended to introduce amending legislation.
Income tax is a tax on income, and pensions, including those paid by the State, are assessable to income tax in the ordinary way.
The position is, of course, that, as a pension is treated for tax purposes as earned income and is, therefore, eligible for earned income relief, a State employee who retires on a pension of, say, one-half of his salary will pay less tax on his pension.
It would not be feasible to differentiate for tax purposes between pensions and other earnings and, accordingly, I cannot see my way to introduce amending legislation as suggested by the Deputies.
17.
asked the Minister for Finance if he will introduce legislation immediately to exempt from income tax all IRA veterans in receipt of military service pensions and old age pensions; and if he will make it retrospective.
I regret that I cannot see my way to introducing the legislation requested by the Deputy.
Is the Minister aware of the hardship suffered by old IRA men in having to pay income tax and that if exemptions can be made for certain categories, the IRA veterans deserve exemption above any other category?
I am not lacking in sympathy for old IRA men but I would remind the Deputy that in recent years particularly very considerable steps have been taken to improve the position of such people, including the provision of pensions for their widows in the last Budget. I also suggest to the Deputy that this is not the best way to go about helping old IRA men in necessitous circumstances, if this is what one wishes to do, because the effect will be far more advantageous for those who are paying tax and are better off than for those who are paying very little tax. It would, of course, be of no benefit at all to those who are so poorly off as to pay no tax.
Would the Minister consider that some radical change is needed in relation to the treatment of IRA veterans especially in regard to asking them to pay income tax? I do not follow the point where the Minister says it may be that the poorer people would suffer from this sort of exemption. The mere fact that IRA veterans are compelled to pay income tax is a cause of hardship to them and I would ask the Minister to examine the matter very closely. If we can make exemptions in the case of other categories, surely the first people we should exempt would be IRA veterans?
I could not accept that exemption from tax would be the right way to assist these people. I repeat that considerable efforts have been made to assist them in various ways and I certainly do not rule out the possibility of further steps in that regard in the future. Exemption from tax, in my view, would be the wrong principle on which to go. For the reason I mentioned, it would be of no benefit to those in greatest need.
The Minister may not have the information available at the moment but if he has, could he tell the House the number of IRA veterans in receipt of IRA pensions?
I should require notice of that question.
Could the Minister give any indication of the number of such pensioners liable to tax?
That is the question I have just been asked.
I am sorry.
Could the Minister not take a leaf out of Mr. Barber's book and look after them?