asked the Minister for Finance the reason a person (details supplied) in County Westmeath has been notified of an underpayment of tax and subsequent deduction even though he is a PAYE worker with tax deducted at source.
Written Answers - Underpayment of Tax.
47.
The liability of a taxpayer under PAYE falls to be reviewed after the end of the tax year.
The Revenue Commissioners have advised me that, on review of the taxpayer's liability for 1984-85, an underpayment of tax emerged mainly because he had been granted tax free allowances in excess of his entitlement for that year. The reason for the underpayment was fully explained to the taxpayer by the inspector of taxes in a letter dated 24 July 1985.
The tax underpaid will be collected by means of a restriction of the taxpayer's tax free allowances for 1986-87.