asked the Minister for Finance the reason a person (details supplied) in Dublin 11 has had her tax free allowance for 1986-87 reduced to £18.97 from £73.74 in 1985-86.
Written Answers. - Taxfree Allowance.
44.
I have been advised by the Revenue Commissioners that the taxpayer and her husband are assessed to income tax on their combined incomes under section 194 of the Income Tax Act, 1967. The taxpayer's husband is in receipt of a social welfare old age pension, which is chargeable to income tax. This pension is paid gross and it is standard practice in such cases to collect the tax attributable to it by restricting the aggregate tax free allowances under PAYE.
Due to an oversight in the tax office the couple's aggregate tax free allowances for 1985-86 were not restricted in respect of the husband's old age pension and consequently the allowances granted for that year were excessive. The necessary restriction of the tax free allowances was effected for the current year, 1986-87.