asked the Minister for Finance the reason a person (details supplied) in Dublin 13 has recently been assessed for income tax in lieu of receipt of disablement benefit when benefit paid previously to him was not so assessed; and if he will make a statement on the matter.
Written Answers. - Income Tax Assessment.
561.
The Revenue Commissioners have advised me that, in addition to his earnings from employment, the taxpayer has, since June 1979, been in receipt of disablement benefit from the Department of Social Welfare. The amounts received by way of disablement benefit are, under existing law, chargeable to income tax. In accordance with standard practice the tax is collected by restricting the taxpayer's tax-free allowances (required for use in connection with his other earnings) by the amount of the disablement benefit thus enabling it to be paid in full without deduction of tax.
It appears that inadvertently the taxpayer's tax-free allowances under PAYE were not restricted to take account of the disablement benefit paid for any year prior to 1982-83. In consequence, the disablement benefit was not charged to tax for those years.