asked the Minister for Finance the reason the tax free allowance allocated to a person (details supplied) in County Limerick for 1985-86 is lower than his allowance for 1984-85.
Written Answers. - Tax Free Allowances.
595.
I have been advised by the Revenue Commissioners that according to the information available to the inspector of taxes the taxpayer is in receipt of a retirement pension and a social welfare invalidity pension both of which are chargeable to income tax. The social welfare pension is paid gross and it is standard practice in such cases to collect the tax attributable to it by restricting the aggregate tax free allowances under PAYE which are set against the retirement pension.
The amount of the net tax free allowance for 1985-86 is lower than that for 1984-85 because the restriction made for 1984-85 was under-estimated. As the taxpayer has not completed a return of income since 1980 the inspector will now issue a form to him for completion. On receipt of the form, duly completed, the taxpayer's tax free allowances for 1985-86 will be amended as necessary.