asked the Minister for Finance if he is satisfied that a person (details supplied) in County Waterford is not being overtaxed; and if he will make a statement on the matter.
Written Answers. - Tax Assessment.
113.
I have been advised by the Revenue Commissioners that, in addition to his retirement pension, the taxpayer is now in receipt of a social welfare pension. Both sources of income are chargeable to income tax. In accordance with standard practice the aggregate tax free allowances under PAYE specified in the taxpayer's certificate of tax free allowances for 1986-87 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 income by means of the restricted tax free allowances.
On the basis of the information which has recently become available to the inspector of taxes, the restriction in respect of the social welfare pension for the current year, 1986-87, is overstated and the taxpayer has also been granted certain tax free allowances to which he is no longer entitled. An amended certificate of tax free allowances for 1986-87 showing the correct restriction and incorporating all the allowances and reliefs to which he has proved title will be issued to the taxpayer as soon as possible. Any tax overdeducted from the taxpayer's retirement pension since 6 April 1986 will be refunded to him by the payer of that pension when the amended certificate is put into operation.