asked the Minister for Finance if he will arrange for a detailed account to be sent to a person (detail supplied) in Dublin 12 who is elderly and who was informed that he would not be due to pay income tax for the latter part of the tax year 1985-86 but who continues to have tax deducted.
Written Answers. - Income Tax Assessment.
88.
I have been advised by the Revenue Commissioners that on the basis of the information available to the inspector of taxes, the taxpayer is in receipt of a retirement pension and a social welfare old age 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 recovered under PAYE from the other pension by means of the restricted tax-free allowances.
The inspector has no record of the taxpayer having been advised that he would not be liable to tax in the current year, 1985-86. In the circumstances, the inspector proposes to review the taxpayer's income tax liability for this year, after 5 April next and to issue a PAYE balancing statement giving full details of the review. The inspector will be writing to the taxpayer shortly for the details required to carry out the review.