asked the Minister for Finance the reason a person (details supplied) in Dublin 17 is being charged tax at the rate of £9.06 per week.
Written Answers. - Income Tax Assessment.
31.
I have been advised by the Revenue Commissioners that the taxpayer and her husband are taxed on the aggregation basis in accordance with section 194 of the Income Tax Act, 1967. Both are in receipt of social welfare pensions which are paid gross. It is standard practice to allocate tax-free allowances in priority against social welfare pensions thus reducing the tax-free allowances available for set off against other income. In this case the tax-free allowances are further reduced by the amount necessary to cover the husband's second pension. The balance of tax-free allowances has been allocated to the named taxpayer for use in applying PAYE to her earnings. The excess of her earnings over this balance of allowances is correctly taxable at 35 per cent and it is confirmed that the correct amount of tax is being deducted.