Bernard J. Durkan
Question:107 Mr. Durkan asked the Minister for Finance the correct tax free allowance in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [3700/98]
Written Answers. - Tax Allowances.
I am informed by the Revenue Commissioners that according to the information available to the inspector of taxes, in the absence of a recent return of income from the taxpayer, the taxpayer's tax-free allowances for the current year are as follows:
|
£ |
|
|
Widowed Personal Allowance |
3,400 |
|
PAYE Allowance |
800 |
|
4,200 |
|
|
Less |
|
|
Survivor's Pension |
3,670 |
|
Net Tax-free Allowance |
£530 or £10.19 per week |
The original certificate of tax free allowances which issued to the taxpayer for the current tax year did not incorporate the deduction for survivor's pension as the inspector was not aware that the taxpayer was receiving a survivor's pension. Survivor's pension is taxable but is paid gross by the Department of Social, Community and Family Affairs i.e. without tax being deducted. The tax on the pension is collected by reducing the taxpayer's tax free allowances by an amount equal to the amount of pension he receives. When the inspector became aware of the survivor's pension which the taxpayer was receiving he issued a revised certificate of tax free allowances showing the allowances set out above. The revised certificate is operative from the date of issue viz. 3 October 1997.