asked the Minister for Finance if his attention has been drawn to the case of a person (details supplied) in Dublin 17 who has recently been advised that he has underpaid his income tax to the extent of £809.23; that his income and that of his spouse has been known to the Office of the Inspector of Taxes each year and that all relevant information has also been made available; the reason the person in question is being advised of the large underpayment at this late stage; and if he will make a statement on the matter.
Written Answers. - Tax Underpayment.
59.
I have been advised by the Revenue Commissioners that the tax payer is assessed to income tax on the basis of the joint income of both spouses in accordance with the provisions of section 194 of the Income Tax Act, 1967. The information received in the tax office was incomplete as regards the wife's employment position for 1985-86. In consequence the inspector of taxes granted allowances in excess of the taxpayer's entitlement for that year. Furthermore, tax for that year was deducted at the 35 per cent rate instead of the 48 per cent rate. As a result, when the taxpayer's liability to tax for that year was reviewed, the underpayment specified in the question emerged. The inspector will communicate directly with the taxpayer in regard to the arrangements for dealing with the underpayment.