asked the Minister for Finance if he will correct a tax error for a person (details supplied) in County Wexford.
Written Answers. - Income Tax Assessment.
250.
The Revenue Commissioners advise me that there is no error in this case. In addition to a retirement pension the taxpayer is in receipt of an old age pension and living alone allowance from the Department of Social Welfare. All sources of income are chargeable to income tax. The social welfare payments are made gross and it is standard practice to collect the tax attributable to them by restricting the aggregate tax-free allowances under PAYE. As the amount of the taxpayer's social welfare payments for the current year exceed the total tax-free allowances due, there is no balance of such allowances available to be set off against his retirement pension which in consequence is liable in full at the 35 per cent rate. A "nil" certificate of tax-free allowances was issued to the taxpayer on 14 July, 1986.