asked the Minister for Finance the up-to-date position regarding the tax affairs of a person (details supplied) in County Waterford.
Written Answers. - Income Tax Assessment.
50.
I have been advised by the Revenue Commissioners that the taxpayer is in receipt of a retirement pension and a social welfare contributory old age pension both of which are chargeable to income tax. As the social welfare pension is paid in full without deduction of tax, the tax attributable to it is normally fully collected by restricting the taxpayer's tax free allowances under PAYE. For the year 1985-86 this restriction was incapable of producing under PAYE the full tax attributable to the social welfare pension (including additional amounts in respect of qualified dependants) and, consequently, it was necessary to make a direct assessment on an estimated basis on the taxpayer to enable the balance of the tax due to be collected. When the details requested by the inspector in his letter of 9 April 1986 are supplied by the taxpayer the assessment will be amended to show the correct liability for 1985-86.
An amended certificate of tax free allowances for 1986-87 to enable the maximum amount of the liability for the year to be collected under PAYE will be issued to the taxpayer as soon as possible.
The inspector will then communicate with the taxpayer as to the manner in which the balance of his liabilities for 1986-87 and 1985-86 are to be discharged.