asked the Minister for Finance if he will outline how an underpayment of £291.98 arose in relation to a taxpayer (details supplied) in County Limerick in 1984-85; the reason dividend interest is included for his wife, £76 in 1984-85 and £65 in 1983-84, despite that fact that she received no such interest in either 1983-84 or 1984-85.
Written Answers. - Tax Underpayment.
93.
The Revenue Commissioners have advised me that the underpayment of tax for 1984-85 arose mainly because a certificate of tax-free allowances containing the tax-free allowances appropriate to deduction of tax in accordance with table S was issued to the taxpayer for that year. On review, those allowances were found to have been excessive. Liability arising on credit union dividends received by the taxpayer and his wife also contributed to the underpayment. As a general rule credit union dividends are assessable to tax on a preceding year basis. The inspector of taxes has dividend certificates which show that the taxpayer's wife received dividends of £76 and £64, respectively, in the years ended 5 April 1983 and 5 April 1984.