asked the Minister for Finance the reason tax allowances have been reduced in the case of a person (details supplied) in County Limerick; if the officials of his Department have fully investigated all the circumstances involved; and if he will make a statement on the matter.
Written Answers. - Income Tax.
510.
I have been advised by the Revenue Commissioners that there has been no correspondence between the inspector of taxes and the taxpayer since April 1981. The last return of income/claim for allowances from completed by the taxpayer was in respect of the year 1973-74.
The tax-free allowances referred to in the question presumably relate to the tax year 1985-86 which does not commence until 6 April 1985. The relevant certificate of tax-free allowances (From P2) contains a note advising taxpayers who dispute any of the allowances to write or call to the tax office at once. If the taxpayer in the present case contacts his inspector of taxes, the matter will be given attention.
511.
asked the Minister for Finance the reason for the large tax deduction in the case of a person (details supplied) in County Westmeath.
I have been advised by the Revenue Commissioners that in addition to a retirement pension the taxpayer is also in receipt of a social welfare old age pension. Both pensions are chargeable to income tax. In accordance with the standard practice the aggregate tax-free allowances under PAYE 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.
It now appears that the taxpayer will not be liable to income tax for the coming year, 1985-86, because his estimated total income for the year will be below the relevant exemption threshold. Arrangements have been made to issue the appropriate exemption certificate. The inspector proposes to review the position for 1984-85 and will be writing to the taxpayer shortly for the necessary information. Any tax found to have been overpaid will be refunded to the taxpayer on completion of the review.