asked the Minister for Finance whether in view of the delay in implementing the increase in income tax in this year's Budget he will take steps to ensure that arrears, when eventually sought, will be deducted from people with small incomes over a period of some weeks.
Ceisteanna—Questions. Oral Answers. - Income Tax Deductions.
23.
The Budget this year contained two proposals which affected wage and salary earners generally. The first was the withdrawal of the reduced rate relief on the first £100 of taxable income. The other was the raising of the exemption limit for persons with small incomes.
In order to give effect to these changes revised certificates of tax-free allowances were needed to enable employers to make the appropriate adjustments in deductions of tax from the weekly or monthly earnings of employees. Before the new certificates could be issued, however, it was necessary to obtain from employers particulars of the current level of employees' earnings. This was done during May and the issue of the revised certificates commenced at the beginning of June and will be completed within the next few weeks.
In some cases the changes have meant that persons are no longer liable to tax and others have had their tax reduced. Where there is additional liability, however, the increased deduction could not be more than 22½p a week so that the maximum "arrears" which could be deducted would not amount to much more than £4.
In any case where an element of hardship might arise consequent on the deduction of the full arrears in one sum, the Revenue Commissioners would have no objection to employers spreading the deduction of the additional tax payable over a reasonable period.