Vol. 477 No. 1
98 Mr. Browne (Wexford) asked the Minister for Finance the reason a person (details supplied) in County Wexford was only allowed a tax free allowance of 50 pence per week by the Revenue Commissioners in spite the fact that she is a widow; and if he will make a statement on the matter. [8486/97]
I am informed by the Revenue Commissioners that the taxpayer is entitled to and has been granted total tax free allowances of £4,388 for 1996-97. In addition to her employment income, the taxpayer is also in receipt of a widow's pension from the Department of Social Welfare. This pension is taxable but is paid gross, without tax being deducted, by the Department of Social Welfare. The method of taxing social welfare pensions is that an amount equivalent to the annual social welfare payment is deducted from the person's annual tax free allowances. Consequently, the taxpayer's tax free allowances are reduced by £4,362, i.e. the amount of the pension, leaving a net tax free allowance of £26 per annum, or 50p per week, available for allocation against her employment income.
