asked the Minister for Finance if he will clarify the income tax situation of a person (details supplied) in County Wexford including his entitlement to a tax rebate for the last tax year; and the reason his current rate of tax has increased.
Written Answers. - Tax Rebates.
87.
The Revenue Commissioners have advised me that the taxpayer's total income for 1985-86 consisted of a retirement pension from his former employer and a social welfare invalidity pension, both of which are chargeable to tax. As the aggregate of these pensions did not greatly exceed the general exemption limit for 1985-86, the taxpayer was entitled to a measure of marginal relief in calculating his tax free allowances for that year. Marginal relief is a device to bring taxpayers at the lowest income levels from exemption to full liability on a phased basis and, accordingly, the allowance for marginal relief in general diminishes and eventually ceases as income increases.
On the basis of the information available the taxpayer's total income for 1986-87 will exceed the 1985-86 figure. The general tax exemption limit for the current year is unchanged. This is reflected in the lower figure for marginal relief in his tax free allowances for the current year. As a consequence the aggregate of the taxpayer's tax free allowances for 1986-87 is less than the 1985-86 figure. The inspector will communicate directly with the taxpayer on the question of reviewing his tax liability for 1985-86.
88.
asked the Minister for Finance if he will arrange to have a refund of PAYE income tax paid to a person (details supplied) in County Kilkenny.
I have been advised by the Revenue Commissioners that the taxpayer applied on 17 April 1986 for a repayment of tax for 1984-85 on the grounds of unemployment. He also submitted certain information to the inspector relating to the year 1985-86 and the current year 1986-87.
The taxpayer's liability for 1984-85 has been reviewed and a cheque in settlement of the refund due for that year was issued to him on 29 April 1986. His tax position for 1985-86 and 1986-87 will be dealt with when the taxpayer supplies certain details to the inspector concerning those years. The taxpayer had undertaken to provide this information but he has not yet done so.