Dáil Éireann Debate, Tuesday - 17 January 2012
148 Deputy Denis Naughten asked the Minister for Finance if he is satisfied that Revenue informed all pensioners and their pension providers of the reduced aged tax credit for the 2011 tax year; when this information was provided to them; the steps taken by him and Revenue to bring attention to this change; the steps taken to date in 2012 by Revenue and him of the current changes; and if he will make a statement on the matter. [2317/12]
View answerI am advised by the Revenue Commissioners that the Age Tax Credit was reduced in value in Budget 2011 from €325 (single persons/widowed person/surviving civil partner) and €650 (married couple/civil partners) in the year 2010 to €245 and €490 respectively in 2011, which are also the current rates. The Age Tax Credit can be claimed by anyone aged 65 years or over and in the case of married couples or those in a civil partnership, where one of the of the parties is aged 65 years or over. The Commissioners are fully satisfied that pension providers were, in mid-December 2010, notified of the reduction in the value of the tax credit in the Employer copy of the 2011 Tax Credit Certificate. A copy of the relevant Employer Tax Credit Certificate is sent to the pension provider for each pensioner in the various schemes under their administration.
As regards notifying the reduction in value of the credit to pensioners themselves, I am further advised that, as with any such changes, relevant information is put into the public domain at the time of the Budget and specifically, last year due to the changes in tax credit amounts announced in Budget 2011, at various times during the month of January 2011, Revenue conducted an information campaign, using various media, to inform taxpayers of all of these changes. This campaign included:—
As part of the general issue of Employer Tax Credit Certificates to all employers, Revenue asked pension providers directly to encourage their pensioners to access the Revenue website for information on the Budget changes and how the tax credit and rate band changes would affect pension payments;
Revenue developed an informational video that was available for viewing through the Revenue website to explain the PAYE changes including worked examples of the likely changes in pension payments for over 65s;
Citizen's Information Centre's (CICs) were contacted by Revenue and were asked to direct any of their clients to our information services;
A dedicated information booklet covering the tax credit changes was developed by Revenue and distributed to CICs.
Lastly, the information campaign also advertised that anyone who required a copy of their 2011 Tax Credit Certificate, setting out details of their individual tax credits, could obtain one from Revenue through a variety of channels.
For the year 2012, as the value of all Tax Credits was unchanged in the recent Budget, the need for an information campaign around tax credit changes was not necessary. The facility to request a copy of the 2012 Tax Credit Certificate through a variety of channels continues to be available to all taxpayers.
In addition, any recipient of a DSP pension who was recently corresponded with, following the updating of pension information supplied by the DSP into Revenue's records, has received a copy of their 2012 Tax Credit Certificate and this displays whether they are currently receiving the benefit of the Age Tax Credit. If the Deputy is aware of any individuals who is not receiving the Age Tax Credit and feels that they are entitled to it, I am advised that details can be supplied to the Commissioners.
The Commissioners further advise that they have commenced discussions with Age Action and the Irish Senior Citizens Parliament about how Revenue can provide information on tax credits and pensioners' tax issues in general and they plan to hold similar discussions with any other interest groups in this area.
149 Deputy Finian McGrath asked the Minister for Finance if he will correct the mistake in the drafting of the universal social charge which means that many persons with incomes of more than €200,000 are actually earning more since the tax was introduced. [2390/12]
View answerAs the Deputy is aware the previous Government introduced the Universal Social Charge (USC) in Budget 2011 in conjunction with a number of changes to the income tax system i.e. reduction in the value of credits and bands and significant changes to the PRSI rates and ceilings. The USC was amended in the Finance Act 2011 to address any unintended consequences which may have resulted in high income earners benefiting as a result of the tax package contained in Budget 2011.
I will consider any further anomalies of the taxation system in the context of the forthcoming Finance Bill.
150 Deputy Niall Collins asked the Minister for Finance if he will examine a payment being made by a person (details supplied) in County Cork in view of the fact that this person has been advised that they are not liable for this charge; and if he will arrange to cease this payment and refund all payments made in this respect, [2413/12]
View answerBased on the most recent information available to the Revenue Commissioners, the person concerned is exempt from the Universal Social Charge (USC) and income tax for the current tax year. When he receives his P60 for 2011 he should contact Mr. Diarmuid O'Connor, Revenue House, Blackpool, Cork (Tel 021-6027506) who will arrange for any refund that may be due.
