Dáil Éireann díospóireacht -
Tuesday, 25 Apr 1995

Vol. 451 No. 8

Written Answers. - Taxpayer's Allowances.

John Browne

Ceist:

74 Mr. Browne (Wexford) asked the Minister for Finance the reason the tax-free allowance entitlement for a person (details supplied) in County Wexford has been withdrawn; his view on whether this is equitable; and if he will have arrangements made to have it restored. [7682/95]

Minister for Finance (Mr. Quinn)

I have been advised by the Revenue Commissioners that the reason the taxpayer's tax-free allowances have been restricted for the current tax year 1995/96 is: (a) to collect the tax due on the disability benefit payments paid to his wife by the Department of Social Welfare. These are paid to her in full without deduction of tax and (b) to collect tax underpaid by the taxpayer for the years 1984-85 to 1987-88.

Unfortunately, the certificate which issued to the taxpayer on 30 March, 1995 failed to include the PAYE allowance — £800 — in respect of his wife. This has now been corrected and as a result an amended certificate of tax-free allowances of £721 per annum or £13.86 per week at Table R — 27 per cent — will be issued to him. The details are as follows:

	£
Personal Allowance	5,000
PAYE Allowance (£800×2)	1,600
PRSI Allowance	140
Expenses	10
Interest paid in full	280
Total Due	7,030
Less Disability Benefit	3,235
Less Underpayment	**3,074**
Net Tax Free Allowance	721

**The underpayment for the years 1984-85 to 1987-88 amounts to £830. The taxpayer's allowances are restricted by £3,074 (£830×100/27) to collect the arrears of tax due.