asked the Minister for Finance why expenses of only £300 for income tax purposes for 1977-78 were allowed for a person (details supplied) in County Kerry; and why the £40 allowed in the previous year for increased expenses was stopped.
Written Answers. - Expenses Deduction.
127.
As the Deputy will appreciate, the Revenue Commissioners are responsible for the administration of taxation laws. They inform me that the expenses deduction included in the taxfree allowances for the current year in this case is £200 (not £300). The deduction is considered by the Revenue Commissioners as adequate and consideration cannot be given to increasing it unless the taxpayer submits a detailed claim, supported by the necessary documentary evidence. The figure for the year 1976-77 was £240, the additional £40 being in respect of a non-recurring expense, namely, the cost of damage to the taxpayer's ordinary clothing as a result of an industrial accident. That additional amount may not of its nature be included in the tax-free allowances for 1977-78.
The deductions referred to are granted under Rule 3, Schedule 2, Income Tax Act, 1967, in respect of expenses of travelling, and other expenses wholly, exclusively and necessarily incurred, in the performance of the duties of the employment. The taxpayer has been requested by the Revenue Commissioners to produce the full details necessary in support of his claim to an increased deduction, but he has not done so. The inspector of taxes has also explained to the taxpayer that it is open to him to have his case for an increased expenses deduction listed for hearing by the Appeal Commissioners.