Dáil Éireann Debate, Wednesday - 6 March 2013
83. Deputy Maureen O'Sullivan asked the Minister for Finance in relation to a couple who have been told they have to pay back tax on the Department of Social Protection's old age pension due to the fact that they are in receipt of occupational pensions, if the Revenue Commission pursue back tax on individual incomes of €50,000 or on the gross combination of a couple earning €50,000 or more; and if he will make a statement on the matter. [11947/13]
View answerPensions payable by the Department of Social Protection (DSP) have always been taxable but the amount of tax payable, if any, depends on the circumstances of the individual concerned, usually whether they have other sources of income. I am advised by the Revenue Commissioners that following receipt of data from the DSP in late 2011 containing details of DSP pension payments, it emerged that some pensioners with significant other income had not previously declared their DSP pension for tax purposes. Revenue’s approach was, firstly, to ensure that the record was correct for 2012 and thereafter to examine in detail the largest cases where there was a mismatch between their records and the DSP record, beginning with cases where annual non-DSP income exceeded €50,000. In the case of a couple in a marriage or civil partnership, the combined non-DSP income of both spouses is considered for this purpose.
The information obtained from the initial examination informed Revenue approach to other high risk cases. This follow-up project has been ongoing and Revenue is now corresponding with taxpayers who did not declare their DSP pension where they have annual non-DSP income of between €30,000 and €40,000. The Commissioners also advise that this correspondence gives the taxpayers in question an opportunity to engage with Revenue, and, for example, to claim any unclaimed tax reliefs such as medical expenses for themselves and their spouse.
