asked the Minister for Finance if he will investigate payment of £25.66 income tax by a retired person (details supplied) in County Galway who is in receipt of a retirement pension of £74.66; and if he will establish that all tax free allowances due to him are being granted by the Revenue Commissioners.
Written Answers. - Income Tax.
444.
I have been advised by the Revenue Commissioners that the amounts mentioned in the question represent the fortnightly figures in respect of a retirement pension paid to the taxpayer and the tax deducted therefrom. The amounts specified are correct.
In addition to the retirement pension the taxpayer is also in receipt of a social welfare contributory old age pension. Both pensions are chargeable to income tax. In accordance with standard practice, the aggregate tax-free allowances under PAYE for the current year, 1984-85, are reduced to take account of the social welfare pension which is paid gross, the tax attributable to it being recovered under PAYE from the retirement pension by means of the restricted tax-free allowances. The aggregate tax-free allowances have also been restricted to effect collection of part of an underpayment of tax which had arisen for the year 1982-83. The balance of the 1984-85 tax-free allowances is available for set off against the retirement pension.
It is not possible to determine whether the taxpayer is in receipt of all the tax-free allowances to which he is entitled as he has not submitted fully completed returns of income for a number of years. In the circumstances, the inspector of taxes will issue a 1984-85 return of income to him for completion. This will enable the appropriate amount of tax-free allowances for that year to be determined.