Liam Aylward
Question:195 Mr. Aylward asked the Minister for Finance if the correct tax free allowance has been afforded to a person (details supplied) in County Kilkenny. [7032/98]
Written Answers. - Tax Allowances.
I am informed by the Revenue Commissioners that the tax free allowances allocated to the taxpayer for the year 1997-98 are correct.
The taxpayer and her spouse are jointly assessed for income tax purposes. The taxpayer's spouse receives an invalidity pension from the Department of Social, Community and Family Affairs. This pension is taxable but is paid in full without tax being deducted. In order to collect the tax that is due it is necesary to reduce the taxpayer's tax free allowances by an amount equal to the invalidity pension paid to her spouse.
I am also informed by the Revenue Commissioners that the taxpayer pays tax under the marginal relief system as this is more beneficial, in her particular circumstances, than taxation under the normal PAYE system. The benefit to the taxpayer from being taxed under the marginal relief system rather than the normal PAYE system is £170.76 in the current tax year.