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Dáil Éireann debate -
Tuesday, 7 Feb 1995

Vol. 448 No. 6

Written Answers. - Tax Free Allowance.

Michael Creed


63 Mr. Creed asked the Minister for Finance the reason a person (details supplied) in County Cork has no tax-free allowance. [2670/95]

The taxpayer in question is in receipt of a social welfare widow's pension. This pension is reckonable as income for tax purposes. The method of taxing social welfare pensions is that the pension is paid gross by the Department of Social Welfare and an amount equivalent to the annual social welfare payment is deducted from the person's annual tax free allowances. I have been informed by the Revenue Commissioners that the taxpayer is in receipt of all the allowances due to her in accordance with her return of income. Her social welfare widows pension exceeds her tax free allowance and consequently, her tax free allowances are reduced to nil.