asked the Minister for Finance the reason for an underpayment for 1986-87 in the case of a person (details supplied) in County Limerick; and the reason the person is paying tax at the rate of approximately £48 per month.
Written Answers. - Tax Payments.
29.
The Revenue Commissioners have advised me that the underpayment in this case arose because, in the absence of completed returns of income for 1984-85 to 1986-87, the taxpayer's income for those years was underestimated. Prior to the submission of her 1987-88 return of income, the latest year for which a return had been received by the Inspector of Taxes, was 1983-84. A review of the taxpayer's liabilities for the years 1984-85 to 1986-87, inclusive, revealed a total underpayment of £194.88, of which an amount of £41.44 related to 1986-87.
The taxpayer's gross tax free allowances for 1987-88 were £3,541. This figure was reduced by an amount of £2,797 in respect of her social welfare widow's pension and £260 for her investment income in order to collect the tax due on those incomes for that year. This left a net tax free allowance of £484 (£40.34 per month) for use in connection with her Irish Life pension of £176.91 per month and resulted in a tax deduction for 1987-88 of £47.79 per month.
The monthly tax deduction for 1988-89 will be greater than that for 1987-88 because part of the underpayment mentioned earlier will have to be collected in conjunction with her current tax liability.
30.
asked the Minister for Finance in view of the fact that the projected income for 1988-89 for a person (details supplied) in County Limerick who is aged 67 and who is married will be only £6,286 inclusive of old age pension, the reason he is not exempt from income tax for 1988-89; and if an exemption certificate will be issued by the Revenue Commissioners.
The Revenue Commissioners have advised me that an amended certificate of tax-free allowances granting tax exemption for the current year, 1988-89, will be issued to the taxpayer shortly.
Any tax overdeducted from the taxpayer's retirement pension will be refunded to him by the payer of that pension on operation of the amended certificate.
31.
asked the Minister for Finance the reason a person (details supplied) in County Limerick is not exempt from income tax in view of the fact that his projected income for the tax year 1988-89 will amount to only £5,658, including old age pension of £90.80 per week; and in view of the facts of this case, if this person will be exempt from tax for 1988-89.
I have been advised by the Revenue Commissioners that an amended certificate of tax-free allowances was issued to the taxpayer on 20 April 1988 granting him exemption from tax for 1988-89.
Any tax deducted from the taxpayer's retirement pension since 6 April last will be refunded to him by the payer of that pension on operation of the amended certificate.