asked the Minister for Finance the reason a person (details supplied) in County Galway had his tax-free allowance reduced from £71.16 to £16.85 per week; and if he will request a full breakdown of the present allowances.
Ceisteanna—Questions. Written Answers. - Tax-Free Allowance.
574.
The Revenue Commissioners have advised me that at the commencement of the year 1983-84 a certificate of tax-free allowances for £3,700 (£71.16 per week) was issued to the taxpayer in respect of that year. A return of income was completed by him on 14 May 1983. This revealed that, in addition to a retirement pension, the taxpayer was in receipt of a social welfare invalidity pension. Both pensions are chargeable to income tax. In accordance with standard practice the taxpayer's tax-free allowances were restricted to take account of the invalidity pension thereby enabling it to be paid in full without deduction of income tax. The balance of the tax-free allowances for 1983-84 amounting to £176 (£3.39 per week) was set off against the retirement pension. An amended certificate of tax-free allowances on that basis was issued to the taxpayer on 20 June 1983.
The tax-free allowances in respect of the year 1984-85 amounting to £876 (£16.85 per week) were arrived at on the basis of a provisional deduction in respect of the invalidity pension estimated to be payable in that year. The amount referred to now requires to be reduced to £613 (£11.79 per week) in the light of later information now available as to the amount of the invalidity pension likely to be payable in 1984-85. An amended certificate of tax-free allowances will, therefore, be issued to the taxpayer in the near future.