asked the Minister for Finance if he will establish with the Revenue Commissioners the reason the tax free allowance of a person (details supplied) in County Galway has been reduced from £33.77 on 4 March to £6.24 per week on 16 October 1985 and if he will establish the effect this change will make to the person's income tax situation.
Written Answers. - Tax Free Allowances.
82.
I have been advised by the Revenue Commissioners that, at the commencement of the current year, it was considered that the taxpayer's total estimated assessable income for 1985-86 was unlikely to exceed the appropriate exemption threshold of £6,000. Accordingly, an exemption certificate was issued. However, on the basis of the taxpayer's 1985-86 return of income, his estimated total income for that year exceeds £6,000. A certificate of tax-free allowances, taking account of estimated marginal relief, was issued to the taxpayer on 16 October 1985.
This certificate was issued on a noncumulative (week one) basis to avoid collection in one sum of the underpayment of tax which, because of the operation of the exemption certificate, would have arisen since 6 April last. Tax is now properly deductible at the 35 per cent rate from the excess of his retirement pension over his net PAYE tax free allowances for 1985-86.
83.
asked the Minister for Finance when a tax free allowance will be transferred from a husband to a wife (details supplied) in County Wexford as the husband is unemployed.
I have been advised by the Revenue Commissioners that the husband ceased employment on 4 October 1985 and on 4 November 1985 he submitted to the inspector of taxes a claim for repayment of tax on the grounds of unemployment. Such claims are dealt with by reference to earnings to date of cessation of employment and tax free allowances to date of claim. On 12 November 1985, a return of income form was issued to the husband for completion to enable the claim to be processed. The inspector will now write to the husband for the necessary signed authorisation which is required for the purpose of transferring any balance of allowances to his wife.