I am informed by the Revenue Commissioners that for the 1997-98 tax year the taxpayer had an income tax underpayment of £949.44. The underpayment arose because all of the taxpayer's taxable income was taxed at the rate of 26% even though part of his income was liable to tax at the rate of 48%.
The amount of the underpayment has been reduced following recent correspondence between the taxpayer and the inspector. The amount now due is £769.26 and this will be collected over a two year period by reducing the taxpayer's tax-free allowances in 2000-01 and 2001-02.