Dáil Éireann debate -
Thursday, 27 Oct 1994

Vol. 446 No. 5

Written Answers. - Tax-Free Allowance.

Róisín Shortall

Question:

79 Ms Shortall asked the Minister for Finance if he will review the situation in relation to the taxation of unemployment benefit given to a person (details supplied) in Dublin 9 who was on unemployment benefit from April 1994, to August 1994, and who, upon returning to employment in August 1994 found that his tax-free allowance has been reduced to almost half his 1993-94 rate; his views on whether the taxation of unemployment benefit in this case constitutes a significant disincentive for this man to return to employment and that there is a need to remove this disincentive; and if he will make a statement on the matter. [2469/94]

Minister for Finance (Mr. B. Ahern)

I have been advised by the Revenue Commissioners that they have examined the case referred to in the question and that the tax free allowance already granted to the taxpayer concerned was incorrect. The inspector of taxes has reviewed the position and an amended certificate of tax free allowances will be issued to him shortly granting him an increased net tax free allowance of £6,458 per annum or £124.19 per week, tax at Table R (27 per cent) and effective from the date issue.