asked the Minister for Finance the reason tax free allowances have been considerably reduced in the case of a person (details supplied) in County Kilkenny.
Written Answers. - Income Tax Allowances.
425.
I have been advised by the Revenue Commissioners that the reduction in the tax-Thefree allowances in the current year 1983-84 is due to the fact that since 26 July 1983 the tax-payer has been in receipt of a social welfare old age pension in addition to his retirement pension. The practice in such cases is to allow the social welfare pension to be paid without deduction of tax and to recover any tax referable to that pension by reducing the PAYE tax-free allowances available for use against the retirement pension.
It now appears that the taxpayer will not be liable to income tax for the year 1983-84 because his total income for the year will be below the relevant exemption limit. An amended certificate of tax-free allowances to give effect to this exemption was issued recently and any tax deduction since 6 April last will be refunded by the Paymaster General.