asked the Minister for Finance the reason for the very large PAYE deductions from the pension of a person (details supplied) in County Westmeath.
Written Answers. - PAYE Deductions from Pension.
302.
I have been advised by the Revenue Commissioners that the inspector of taxes has written to the taxpayer on a number of occasions for the information necessary to determine the correct tax-free allowances but the required details have not been supplied.
In addition to a retirement pension the taxpayer is thought to be in receipt of a social welfare pension, both of which are chargeable to income tax. In accordance with practice, the taxpayer's tax-free allowances are set off, in the first instance, against the amount of the social welfare pension to enable it to be paid in full without deduction of income tax. In the present case there is no balance of allowances available for set off against the retirement pension and this accounts for the large tax deductions which are being made from that pension.