asked the Minister for Finance if, in view of the fact that social welfare pensions are taken into account for income tax purposes, he will request the Revenue Commissioners to issue new certificates of tax-free allowances to those persons whose income has been reduced as a result of social welfare equalisation; and if he will make a statement on the matter.
Written Answers. - Income Tax on Social Welfare Pensions.
14.
The Revenue Commissioners have advised me that any individual who wishes to have his-her certificate of tax-free allowances modified for the current year to take account of a reduction in those social welfare benefits which are taxed on an actual basis namely, retirement pensions and contributory old age pensions, should advise his or her inspector of taxes (preferably by means of the Department of Social Welfare notification — PEN 65) of the total amount of the reduction in benefit in the period to 5 April 1987. An amended certificate will then be issued for 1986-87.
Certain types of social welfare income are taxed in the current year on the basis of the amounts received in the preceding year. The only social welfare payments in this latter category which are likely to be affected by equalisation are invalidity pensions. No adjustment of tax-free allowances would, therefore, be due for 1986-87 in these cases. The pensioners concerned should, however, advise their inspectors of taxes of the amount of the reduction so that the necessary adjustment may be made for the coming year.