Dáil Éireann debate -
Wednesday, 24 Apr 1991

Vol. 407 No. 4

Written Answers. - Widow's Pensions Deductions.

John V. Farrelly

Question:

44 Mr. Farrelly asked the Minister for Finance the reason a person (details supplied) in County Meath has had income tax and PRSI deducted from her widow's pensions from the Department of Social Welfare and Meath County Council; and if she is entitled to a rebate.

Minister for Finance (Mr. A. Reynolds):

I have been advised by the Revenue Commissioners that the taxpayer is taxable on both pensions. The taxpayer is not entitled to exemption from tax as her income exceeds the exemption limit.

The social welfare pension is paid in full without deduction of tax and the taxfree allowances due are set off in priority against that pension. The certificate of tax-free allowances which issued on 4 March 1991 reflects this fact and includes all the allowances which the taxpayer claimed. The taxpayer is liable to PRSI at the rate of 2.25 per cent on her county council pension. No PRSI is deducted from her widow's pension.