Theresa Ahearn
Question:69 Mrs. T. Ahearn asked the Minister for Finance the reason a person (details supplied) in County Tipperary is paying the top rate on her earnings; and if he will make a statement on the matter.
Written Answers. - Income Tax Liabilities.
I have been advised by the Revenue Commissioners that the certificate of tax free allowances which is about to be issued to the taxpayer will show a tax rate of 53 per cent. This is because it is expected that the taxpayer's and her husband's joint income will not greatly exceed the exemption limit and she is being given the benefit of marginal relief.
Marginal relief operates to ensure that the tax payable in respect of the taxpayer's total income is no more than 53 per cent of the excess of their total income over the exemption limit. In every case in which it applies, it is more favourable to the taxpayer than taxation under the normal system of applying the standard rate to their taxable income, i.e. income less personal allowances and reliefs: this is because, although the rate of tax is higher, the amount of income to which it applies is considerably less.
Any tax deducted since the commencement of her employment will be refunded by her employer on the operation of this certificate.