Brian Cowen
Ceist:83 Mr. Cowen asked the Minister for Finance the basis for the assessment of income tax liability of a person (details supplied) in County Offaly; and if he will make a statement on the matter.
Written Answers. - Tax Liability.
I have been advised by the Revenue Commissioners that the taxpayer is in receipt of a retirement pension and a social welfare old age pension. Both sources of income are chargeable to tax. As the social welfare pension is paid gross i.e. without deduction of tax, the tax attributable to it is collected from his retirement pension by restricting his tax-free allowances by the amount of the social welfare pension.
However, on the basis of his completed return of income for the current year, 1990-91, his estimated income will not exceed the appropriate exemption threshold of £8,700. Accordingly, he is entitled to exemption from income tax. An amended certificate of tax-free allowances granting exemption has now been issued to him. The tax deducted from his retirement pension since 6 April last will be refunded by his former employer.