asked the Minister for Finance the reason a person (details supplied in County Offaly who is in receipt of an invalidity pension is being taxed on his Bord na Móna pension; if this is correctly taxed; the basis on which it is being taxed; and if he will make a statement on the matter.
Written Answers. - Tax-free Allowance.
49.
The Revenue Commissioners have advised me that the taxpayer's pension from Bord na Móna is charged to tax under PAYE. His invalidity pension is taxable under Schedule E by virtue of section 110 of the Income Tax Act, 1967, and is paid gross by the Department of Social Welfare. It is standard practice to collect the tax attributable to the invalidity pension by restricting the taxpayer's tax-free allowances under PAYE by the amount of that pension.
The inspector of taxes wrote to the taxpayer in December, 1986 for the information required to enable his tax affairs to be brought up to date. On receipt of this information the inspector will make any necessary adjustment of the taxpayer's tax-free allowances.