asked the Minister for Finance the reason a person (details supplied) in Dublin 17 has not been advised that he has made an underpayment of taxes amounting to £432.23 for 1986-87 and £252.03 for 1985-86 as he furnished full details at all times regarding his and his wife's incomes; the basis on which this person's spouse is being taxed for receipt of disability benefit; and, in the event of a correct assessment, if his Department will accept a reasonable weekly deduction in lieu of same.
Written Answers. - Income Tax.
81.
The Revenue Commissioners have advised me that reviews of the taxpayer's liabilities to income tax for 1985-86 and 1986-87 were carried out on 20 October 1987 and underpayments in the amounts referred to in the question emerged. The underpayments arose because the taxpayer has been granted allowances in excess of his entitlement for both years as a consequence of incorrect details of income for 1985-86 having been supplied to the tax office by the taxpayer's spouse in March 1986. The tax-free allowances for 1985-86 were automatically carried forward to the following year in accordance with normal practice under the PAYE system. The underpayments will be collected by restricting taxpayer's tax-free allowances for 1988-89 and 1989-90.
The inspector has no knowledge of a disability benefit being paid to the taxpayer's spouse and he will now communicate with the taxpayer in the matter.