Ned O'Keeffe
Question:121 Mr. E. O'Keeffe asked the Minister for Finance the reason a tax free allowance was substantially reduced in the case of a person (details supplied) in County Cork.
Written Answers. - Tax Free Allowance.
I have been advised by the Revenue Commissioners that the taxpayer's tax free allowances are restricted by the amount of his social welfare pension to take account of the tax attributable to that pension, which is paid gross. The result is that the tax due on that pension is collected under the PAYE system.
The tax free allowances covered by the certificate which issued to the taxpayer in March 1989 were reduced by £2,926 in respect of his social welfare pension. From the details furnished on the taxpayer's return of income in October 1989, it was evident that the restriction of his tax free allowance to take account of the social welfare pension was too low. His tax free allowances were, accordingly, reduced by a further £220 on 19 October 1989.