asked the Minister for Finance whether a person (details supplied) in County Galway has been charged in excess of the appropriate amount of tax on his income.
Written Answers. - Tax Charge.
182.
I have been advised by the Revenue Commissioners that the correct amount of income tax has been charged in this case. In addition to a retirement pension the taxpayers is in receipt of a social welfare old age (contributory) pension. This pension is paid gross and it is standard practice to collect the tax attributable to it by restricting the aggregate tax-free allowances set against the retirement pension under PAYE.
A certificate of tax-free allowances for the current year, 1986-87, incorporating all the allowances and reliefs to which the taxpayer is entitled was issued to him on 26 February 1986. He is properly chargeable to tax at 35 per cent on the excess of his retirement pension over his net tax-free allowances.