asked the Minister for Finance the reason a tax rebate has not been made to a person (details supplied) in Dublin 5; if she receives her widow's pension from the UK and only a small additional portion of it from this State; the reason she is subjected to the same conditions as pertaining to recipients of widow's pension within the State; the reason there is a distinction for tax allowances for deserted wives, widows, and unemployment assistance recipients whose wives are working; if her tax free allowance is affected by the budget; and if he will make a statement on the matter.
Written Answers. - Tax Rebate.
375.
I have been advised by the Revenue Commissioners that the taxpayer applied for a refund on 24 January 1984 and a cheque in settlement of overpaid tax issued on 7 February 1984.
Any amounts received by way of widow's pension from the UK or from the Department of Social Welfare are, under existing law, chargeable to Irish tax. There would be no ground in principle or equity for differentiating between the tax treatment of such payments merely because they arise from different sources.
As regards the reference in the question to a distinction in tax allowances for certain categories, deserted wives and widows, having charge of children (which is the case of the widow referred to in the question) receive the same aggregate amount as is granted under existing law to a married couple except that they receive the amount by way of single allowance or widowed allowance, as the case may be, and single parent allowance. The fact that a taxpayer is in receipt of unemployment assistance does not affect his entitlement to married allowance, no more than does the fact that his wife may be working. In addition working wives, whether deserted or not, are in general entitled to the special PAYE allowance of £600.
The aggregate of widowed allowance and single parent allowance to which the person referred to in the question will be entitled for 1984-85 under the budget proposals will be increased to £3,600 as compared with the corresponding figure for 1983-84 of £2,900.