asked the Minister for Finance if his attention has been drawn to the widespread confusion which exists among the general public who are receiving preliminary tax claims, particularly when the amount sought in preliminary tax includes the total payment of PRSI, health contributions and employment and training levies, having regard to the fact that this is causing great distress among smallholders who have no income tax liability.
Written Answers. - Preliminary Tax Claims.
40.
I am not aware of any widespread confusion among the general public regarding the elements to be included in the payment of preliminary tax. The Revenue Commissioners mounted extensive campaigns in 1988 and 1989 to explain the nature of preliminary tax and other aspects of selfassessment to self-employed taxpayers and placed advertisements in the media to coincide with the due dates for the payment of preliminary tax in those years. The Revenue Commissioners have informed me that the general feedback from the tax districts is that their efforts in this area have been largely successful and that there is no widespread confusion regarding the elements to be included in the payment of preliminary tax.
Smallholders whose income is below the exemption limits for income tax are excluded from the system and are not issued with notices of preliminary tax. The exemption limits are £3,000 for widowed or single people and £6,000 for married persons with increased exemption limits for those over 65 and 75 years of age.
Smallholders whose income is in excess of the exemption limit must make returns even though they may not have a liability to tax when allowances are deducted. Such persons are also liable to pay PRSI, health contributions and the employment and training levy. Notices of preliminary tax, therefore, issue in such cases. The Revenue Commissioners are not aware of any widespread distress among smallholders. Special arrangements have been made to assist smallholders accounting for tax in that the Revenue Commissioners will accept a farm profile form in place of returns and accounts. Any smallholder who has any queries in relation to the system is welcome to call to his local tax office to discuss the matter.