asked the Minister for Finance if his attention has been drawn to the serious anomaly which exists in the case of deserted wives in receipt of social welfare benefit who cannot take part-time work because their income tax liabilities will be greater than their income.
Written Answers. - Taxing income of Deserted Wives.
84.
I have been advised by the Revenue Commissioners that no anomaly exists in this area. Where a recipient of a deserted wife's benefit or a deserted wife's allowance has other income, both sources of income are chargeable to tax and the amount of the liability will depend on the extent of both sources of income and on the allowances due.
In the case referred to by the Deputy, the tax due if the person concerned did not take up employment would be £460.48. Income of £510 was earned from employment bringing her total tax liability to £623.68. In other words, the extra tax liability incurred because the person took up employment was £163.20 i.e. £510 at the tax rate of 32 per cent.