asked the Minister for Finance when a tax refund will be made to a person (details supplied) in County Cork and the reason for the delay.
Written Answers. - Tax Refunds.
518.
The Revenue Commissioners have advised me that the tax affairs of the husband and wife are dealt with in two different tax districts and that up to and including 1982-83 the couple were separately assessed to income tax. Under this method of assessment, the tax liability of either spouse for any year can only be finally determined when the income of both spouses is known as the transfer of unused balances of allowances, reliefs and rate bands from one spouse to the other may arise.
There has been protracted correspondence in the present case between the inspector of taxes and the agents concerning benefit in kind income arising to the husband. The inspector has now written to the agents for further information relating to interest which the husband received from moneys on deposit and when the matter is clarifed the tax liability of each spouse for 1982-83 will be determined and any tax found to have been overpaid will be refunded as appropriate.
519.
asked the Minister for Finance if he will immediately correct an error relating to a tax-free allowance for a person (details supplied) in County Wexford.
I have been advised by the Revenue Commissioners that a correct certificate of tax-free allowances for the current year, 1984-85, was issued direct to the taxpayer's employer on 14 May 1984. It was understood that when the certificate was operated on 17 May 1984 any tax which had been over-deducted from the taxpayer's earnings since 6 April last was refunded to him by his employer.
520.
asked the Minister for Finance if he will immediately correct a tax problem and pay a rebate to a person (details supplied) in County Wexford.
The rules for the taxation of married couples in the year of marriage were changed by the Finance Act, 1983. That Act provides that, for the year 1983-84 and subsequent years of assessment, a married couple are to be taxed as single persons throughout the year of assessment in which marriage takes place. A measure of relief is provided by way of repayment where the total tax due and paid by the couple under that arrangement exceeds the total tax for which they would have been liable if they had been married throughout the year of assessment concerned. The relief is the amount which bears the same proportion to the excess as the period of marriage in the year bears to the full year.
I have been advised by the Revenue Commissioners that, as the wife had no earnings before or after the date of marriage, a non-cumulative certificate of tax-free allowances incorporating the married allowance and double rate bands was issued on a concessional basis to the taxpayer on 3 October 1983. The inspector has now written to the taxpayer for the details required to enable his tax liability for 1983-84 to be reviewed. On completion of the review, any tax which may have been over-deducted for that year will be refunded to the taxpayer.