I have been advised by the Revenue Commissioners that, at the commencement of the current year, 1990-91, the taxpayer and her husband were assessed to tax on the basis of the aggregation of their incomes. As her husband was unemployed, the tax-free allowances due to the couple were allocated to the taxpayer. Her husband commenced employment during the year and both spouses advised the inspector of taxes that they wished to be taxed on the separate treatment basis. Under this system, the taxpayer and her husband are taxed as single persons and there is no provision for the transfer of any unused tax-free allowances from one spouse to the other. An amended certificate of tax-free allowances on this basis was issued to the taxpayer on 20 August 1990.
On the basis of this amended certificate granting reduced allowances, an underpayment of tax amounting to £350 arose since 6 April last. The taxpayer advised her employer that she wished to have the underpayment collected as quickly as possible and arranged with her employer that it would be collected by January 1991. Otherwise, the employer would have spread collection until the end of the tax year.