asked the Minister for Finance if he will examine the case of a person (details supplied) in County Limerick; if her tax free allowance is correct; and the reason she paid £3,907.16 tax out of income of £9,264 in 1984-85.
Written Answers. - Tax-Free Allowance.
92.
I have been advised by the Revenue Commissioners that, in addition to her employment earnings, the taxpayer is in receipt of a social welfare pension. Both sources of income are chargeable to income tax. In accordance with 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 other income by means of the restricted tax-free allowances.
On the basis of the information available to the inspector of taxes the restriction in respect of the social welfare pension for the current year, 1985-86, is understated. However, the inspector does not propose to amend the 1985-86 tax-free allowances at the present time.
The position for the years 1983-84 and 1984-85 has been examined and the indications are that insufficient tax was paid for those years.