Dáil Éireann debate -
Tuesday, 25 Feb 1992

Vol. 416 No. 2

Written Answers. - Tax Clearance System.

Michael Moynihan

Question:

75 Mr. Moynihan asked the Minister for Finance if he will exempt the following categories from being required to furnish a current tax clearance certificate in respect of the payment of public grants so that they will not have to engage accountants: (1) those drawing unemployment assistance, (2) widows in receipt of widow's non-contributory pensions and (3) those over 66 years of age in receipt of non-contributory old age pension.

Minister for Finance (Mr. B. Ahern)

In 1988 the Government introduced the tax clearance system in respect of grants, subsidies and similar type payments from State and public authorities. The basic aim of this system is to ensure that individuals who benefit from public grants or subsidies have their tax affairs in order.

As from 1 September 1991, the tax clearance system was extended to include all grants and subsidies over £500, other than payments under the guarantee section of FEOGA.

In the case of grants between £500 and £5,000 the applicant must indicate on his grant application the tax district dealing with his affairs, furnish his tax reference number and indicate that, to the best of his knowledge, his tax affairs are in order. The requirement for an applicant for a grant to produce a tax clearance certificate from the Revenue Commissioners applies only in the case of grants of £5,000 or more.

I have been advised by the Revenue Commissioners that it is more likely that taxpayers in the three categories referred to by the Deputy would be applicants for the smaller grants and, accordingly, would only have to comply with the simpler requirement.

Any person who has ever made a tax return should be in possession of the relevant information. If they have neither an outstanding tax debt nor a current tax liability they should have no difficulty with confirming that their tax affairs are in order.

If, however, the Deputy is aware of any individual cases involving the categories of taxpayers referred to where difficulties have occurred, he should communicate with me so that I can have the matter investigated.