asked the Minister for Finance the reason a person (details supplied) in Dublin 5 has to pay tax on her late husband's contributory pension when her children are unemployed.
Written Answers. - Tax on Pensions.
59.
The Revenue Commissioners have advised me that in addition to the pension referred to in the question, the taxpayer is in receipt of a social welfare widow's pension. Both pensions are chargeable to income tax. In accordance with standard practice the aggregate tax free allowances under PAYE are reduced to take account of the social welfare pension which is paid gross, the tax attributable to it being recoverd under PAYE from other pension by means of the restricted tax free allowances. A certificate of tax free allowances for the current year, incorporating all the allowances and reliefs to which the taxpayer is entitled was issued on 4 March 1985.
60.
asked the Minister for Finance the circumstances under which a person (details supplied) in Dublin 11 who is an old age pensioner and a former employee of Irish Airlines is receiving deductions from his staff pension in respect of PAYE and so on totalling £50.95; and whether, considering all the circumstances and bearing in mind the present day demands on the limited funds in question, he will consider reassessing this person's position.
I have been advised by the Revenue Commissioners that, for the current year, 1985-86, the taxpayer has been granted all the tax free allowances to which he proved title. In accordance with standard practice the aggregate tax free allowances are reduced to take account of his social welfare pension which is paid gross, the tax attributable to it being recovered under PAYE from the retirement pension by means of the restricted tax free allowances. The figure of £50.95 mentioned in the Question includes an amount of £46.35 in respect of income tax payable. The balance of £4.60 represents the youth employment levy and health contribution.