asked the Minister for Finance if he will make a statement regarding a person (details supplied) in Dublin 7 who is a recipient of a Civil Service pension of £158.60 gross per month and an old age pension for himself and his wife of £91.70 per week; whether tax is deducted from the proposed social welfare pension increase which is to take effect next July; the reason it is possible to deduct from a pension an increase which has not yet taken effect; the number of cases similar to this; and if he will have this case investigated as a matter of urgency.
Written Answers. - Deductions from Pension.
51.
The Revenue Commissioners have advised me that the taxpayer has been accorded all personal allowances and reliefs for purposes of PAYE to which he is entitled for the current year.
In accordance with normal practice, which is founded on the Income Tax (Employments) Regulations, 1960, tax free allowances under PAYE are restricted so as to enable the full tax on the taxpayer's Civil Service pension and on his social security pension, including any increase in the latter pension payable during the current year, to be deducted in as even a spread as possible throughout the year, on payment of his Civil Service pension. As a corollary, his social security pension is paid without deduction of tax under PAYE.
Any alternative treatment such as that implied in the third part of the question would be administratively impracticable in the field of PAYE because of the very large numbers of taxpayers who would be likely to be affected during the tax year by such a charge. However, statistics are not compiled in such a manner as would enable a precise indication of the numbers of taxpayers involved to be given.