asked the Minister for Finance if he has any plans to correct the anomaly which exists whereby a widow who is working is taxed on her widow's pension which results in her paying tax at 58 per cent even if she has three children; if his attention has been drawn to the fact that in such circumstances she would be better off financially if she were a single parent with three children; and if he will make a statement on the matter.
Written Answers. - Tax Anomaly.
151.
I have been advised by the Revenue Commissioners that they are not aware of the anomaly to which Deputy Bell refers.
The aggregate of the personal allowances due to the widowed single parents and other single parents for 1988-89 is £4,100 made up as follows:
|
Widowed single parent |
Other Single parent |
|
|
£ |
£ |
|
|
Ordinary personal allowance |
2,550 |
2,050 |
|
Additional single parent allowance |
1,550 |
2,050 |
|
Aggregate personal allowance |
4,100 |
4,100 |
If the Deputy has a particular case in mind, I will have the matter investigated on receipt of the necessary particulars identifying the relevant case.