Michael Creed
Question:82 Mr. Creed asked the Minister for Finance the reason a person (details supplied) in County Cork has had a significant increase in her income tax payment recently; and if he will make a statement on the matter. [9830/97]
Written Answers. - Tax Liability.
I am informed by the Revenue Commissioners that for most of the tax year 1996-97 the taxpayer was taxed at the 27 per cent rate. In March 1997 the taxpayer's taxable income exceeded the 27 per cent threshold of £9,400 and the portion of her taxable income which exceeded £9,400 was taxed at the 48 per cent rate.
To avoid a repeat of this situation in 1997-98 the taxpayer will be taxed at 48 per cent throughout the year. She will, however, as happens in the case of other 48 per cent taxpayers, be given an additional tax free allowance, table B allowance, to compensate her for having tax deducted at the higher rate. In this way the taxpayer's tax payments will be spread evenly over the year and she will not find herself in the position that the amount of tax to be deducted from her pension increases towards the end of the tax year.