State Pensions Payments

Dáil Éireann Debate, Thursday - 28 June 2018

Thursday, 28 June 2018

Questions (280)

Michael Moynihan

Question:

280. Deputy Michael Moynihan asked the Minister for Employment Affairs and Social Protection if her Department will issue updated tax credit certificates to the Revenue Commissioners in respect of social welfare recipients when rates of payments change during a calendar year; if her attention has been drawn to the fact that this is causing underpayments of income tax due to inaccurate information being provided to the Revenue Commissioners; the steps being taken to rectify the situation; and if she will make a statement on the matter. [28583/18]

Written answers

Minister for Employment Affairs and Social Protection

This matter relates to the information provided annually by my Department to the Revenue Commissioners in respect of expected payment for the forthcoming tax year under various schemes which are considered as taxable income. Currently, Revenue makes the necessary adjustment in future tax years to address any underpayment of tax due to increases in the rates of payments.

From the information provided, I note that recipients of state pensions, in particular, can find that additional income tax may accrue when the rate at which the state pensions is paid increases during the course of the year. The Deputy will know that the Government has been able to increase the rate of State Pension in recent years.

I trust that this clarifies the matter for the Deputy.