Dáil Éireann debate -
Thursday, 11 May 2000

Vol. 519 No. 1

Written Answers. - Tax Code.

Noel Ahern

Question:

121 Mr. N. Ahern asked the Minister for Finance the obligation on an employer to put the budget taxation changes into early effect; the number of weeks delay which is acceptable; the reason for the delay in his own Department; the reason retired civil service pensioners were not given the new tax benefits in April; if he will respond on behalf of the Paymaster General; and if he will make a statement on the matter. [13215/00]

Minister for Finance (Mr. McCreevy)

Changes implemented in the budget come into effect at the start of the income tax year, 6 April.

Any such changes should be implemented without delay. Where such delay inadvertently occurs it should be corrected at the earliest possible opportunity and any resulting arrears paid with effect from the 6 April.

The Paymaster General's office of my Department is responsible for the payment of retired Civil Service pensions, which are paid fortnightly. The first pay day on which the new taxation rates should have applied was Thursday, 13 April. Such updates are made by running a computer programme. In this case, there was an administrative problem in relation to the content of electronic files transmitted from Revenue which resulted in one of the seven categories of pensioners not being updated.

The problem was rectified for the next payroll dated 27 April. All arrears due were also paid at that time.

My Department has been in touch with the Revenue Commissioners to put new procedures in place to ensure that this does not happen again.