asked the Minister for Finance why it is not practicable to have income tax deducted weekly by PAYE throughout the whole year from forestry workers and Office of Public Works employees.
Ceisteanna—Questions. Oral Answers. - Income Tax Payments.
106.
On the introduction of the PAYE system in 1960, forestry workers and employees of the Office of Public Works were, in common with State employees generally, excluded from the system as they already had tax deduction machinery available to them. This machinery provides for the making of provisional weekly deductions as from the beginning of the tax year and is, generally speaking, working satisfactorily. These provisional deductions are adjusted later in the year when formal assessments are made.
Special legislation, which would have to be of general application to all state employees, would be required to extend PAYE to the emoluments of forestry workers and employees of the Office of Public Works. There does not appear to be any evidence at present of a general desire on the part of State employees to be brought within the ambit of the PAYE system but if such a desire should be manifested, I would be prepared to further consider the matter.
Is the Minister aware that in jobs which have considerable overtime elements the earnings of individual workers, particularly in the Office of Public Works, can vary considerably from week to week and that there is, accordingly, a great deal of dissatisfaction in that respect?
I am aware there are pockets of employment in respect of which there appears to be a desire to have deductions made by PAYE but at present it appears the majority would prefer the older system. I have an open mind on the matter, as I indicated, and I am disposed to make the change if the general body of employees of the State express a desire to have that change made.
Would the Minister undertake to look at recommendations I made in that regard when I was in charge of the Office of Public Works and consider the matter?
Did the Deputy make them to the Department of Finance?
Yes.
I shall endeavour to have them located and I shall study them.
107.
asked the Minister for Finance whether he will allow employees to obtain tax-free allowances in respect of the full contribution payable towards the insurance stamp.
The answer is in the negative. I would point out that the proportion of the contributions which is not allowable as a deduction for tax purposes relates to benefits which are not chargeable to tax.