asked the Minister for Finance the reason a person (details supplied) in County Waterford has had her tax-free allowance reduced on her pension.
Written Answers. - Tax-Free Allowance.
16.
I have been advised by the Revenue Commissioners that, in addition to county council pension, the taxpayer is in receipt of a social welfare widow's pension. This pension is paid gross and it is standard practice to collect the tax attributable to it by restricting the tax-free allowances under PAYE by the amount of that pension.
The estimated restriction in respect of the social welfare pension which was taken into account in the taxpayer's certificate of tax-free allowance for 1987-88, has been found to be excessive. An amended certificate incorporating the correct restriction, by reference to this year's budget proposals, will be issued to the taxpayer as soon as possible. This will result in a higher allowance being available for use against the taxpayer's local authority pension. Any tax over-deducted from that pension since 6 April 1987 will be refunded by the county council on operation of the amended certificate.