Vol. 516 No. 4
75 Mr. Aylward asked the Minister for Finance the reason a preliminary tax demand in respect of 1998-99 to be submitted before 31 March 2000 has issued to a person (details supplied) in County Kilkenny who has no taxable income; and if he will arrange to exempt him from this demand. [8374/00]
I am informed by the Revenue Commissioners that a notice of preliminary tax for 1998-99 issued to the taxpayer in October 1998. The notice issued in the normal course as the taxpayer had made a return for the previous year which showed that he was in receipt of rental income. On 21 October 1998, the taxpayer paid £250 preliminary tax.
The inspector of taxes has now established that the taxpayer's level of rental income is such that he does not have an income tax liability. The inspector will, therefore, treat the taxpayer as not liable to income tax for 1998-99 and following years. The tax office records have been noted accordingly and arrangements are being made to refund the preliminary tax which the taxpayer has paid.
While the taxpayer is not liable to pay income tax, he is liable to pay PRSI. In cases where a self-assessment taxpayer has no income tax liability but is liable to pay PRSI, the PRSI payments are made directly to the Department of Social, Community and Family Affairs. The inspector of taxes has written to the taxpayer informing him that he is being treated as not liable to income tax and advising him that he should pay any PRSI contributions due to the Department of Social, Community and Family Affairs. The office of the Department of Social, Community and Family Affairs in Waterford has been advised of the position in relation to the taxpayer.
