Gerry Reynolds
Question:183 Mr. G. Reynolds asked the Minister for Finance the reason a person (details supplied) in County Leitrim has been notified of a large underpayment in PAYE. [30009/01]
Written Answers. - Tax Collection.
I am informed by the Revenue Commissioners that regular, systematic checks are carried out to identify taxpayers who may have underpaid income tax. The taxpayer came to notice because the combined income of the taxpayer and his wife was substantially higher in the 1999-2000 tax year than it had been in 1998-99. The increase in income meant that some of the taxpayer's income became liable to tax at the higher rate. However, the taxpayer did not alert the tax office to the increased income and tax continued to be deducted at the standard rate only. This resulted in the taxpayer underpaying £1,652.28 – 2,097.96 – in 1999-2000. The inspector proposes to collect the underpayment over a two-year period beginning on 1 January 2002.