asked the Minister for Finance whether it would be possible to introduce a PAYE income tax system for the Defence Forces.
Ceisteanna—Questions. Oral Answers. - PAYE System for Defence Forces.
7.
When PAYE was being introduced, the form of the legislation provided that it should not apply to State employees and certain other groups who already had tax deduction machinery available to them.
The existing arrangements in regard to State employees are working satisfactorily—that is to say, where the employees make full use of the deduction system at their disposal. This system includes the making of provisional deductions where authorised by the taxpayer; and these are adjusted later in the year when formal assessments are made.
In the case of members of the Defence Forces their attention is drawn to the provisional deduction scheme at the commencement of each tax year. The majority participate in the scheme. It is true that those who neglect to participate do not have provisional tax deductions made during the months before the formal assessments are made and have proportionately heavier deductions made afterwards.
To apply PAYE now to the Defence Forces would require special legislation, which would have to be of general application and would raise issues which the employee would have to consider. I am not satisfied that this course is necessary at present.
Is the Taoiseach not aware that the Defence Forces in common with other low-paid employees have, in spite of what he said, considerable complaint about the fact that the deductions usually start in large sums immediately before Christmas in each year and that for one reason or another they are not made in very many cases until that time? Particularly, if they happen to have any increased amount in salary or wages during the year, all the deductions are made between December and the following 5th April. Will the Taoiseach have another look at the matter because it is serious?
That is separate from the question asked. If there are grievances in that respect I can have them looked at.