Vol. 553 No. 2
217 Mr. Penrose asked the Minister for Finance if persons (details supplied) in County Westmeath will have reviews of their tax situation carried out, for each of them; if one of the persons named, who was made redundant in 1998 and who paid tax on their redundancy, will have same examined under the top slicing regulations; and if he will make a statement on the matter. [13080/02]
I am informed by the Revenue Commissioners that the taxpayers are jointly assessed for income tax purposes. The inspector of taxes has reviewed their income tax liability for the 1998/99 tax year. The review established that the taxpayers' total income for the year, which consisted of their employment income and the second-named taxpayer's unemployment benefit, a taxable payment, and redundancy payment, was liable to tax at the standard rate of 24%. As the taxpayer's redundancy payment was taxed at the higher rate of 46%, a refund of €857.85 is due. A cheque for this amount will be issued shortly.
Top slicing relief ensures that a lump sum payment is not taxed at a rate higher than the average rate of tax paid by the taxpayer in the previous five years. As the second-named taxpayer's redundancy payment was liable only at the standard rate of tax, which rate was lower than the average rate of tax in the previous five years, top-slicing relief does not arise in this case.
