asked the Minister for Finance the reason income tax is being deducted from the pension of a person (details supplied) in County Westmeath.
Written Answers. - Income Tax Deductions.
733.
I have been advised by the Revenue Commissioners that in addition to a retirement pension the taxpayer is also in receipt of a social welfare old age pension. Both pensions are chargeable to income tax. In accordance with practice the taxpayer's tax-free allowances are set-off, in the first instance, against the amount of the social welfare pension to enable it be paid without deduction of income tax, leaving the balance of the allowances available against the retirement pension.
However, on the basis of details of income for the year 1982-83 furnished by the taxpayer on 6 July 1982 it was discovered by the inspector of taxes that allowances to which the taxpayer was not entitled had been granted in the tax-free allowances originally issued for that year. A revised certificate was, therefore, issued on a non-cumulative basis which has resulted in tax liability under PAYE.
The inspector now proposes to review the position for 1982-83 and he will be writing to the taxpayer for the necessary information to carry out this review.