Written Answers. - Income Tax Process.
Éamon Ó Cuív
Ceist:
54
Éamon Ó Cuív
asked the
Minister for Finance
the reason income tax affairs are handled by the tax office nearest to a person's employer and not by the office nearest to the person themselves when these offices are not the same; and if he will make a statement on the matter.
[2993/96]
I have been advised by the Revenue Commissioners that a PAYE taxpayer's tax affairs are administered by the tax office where the employer is registered for PAYE purposes. The place of registration generally depends on the employer's main place of business. In general, this does not present any difficulties as, in most cases, the employer and employees will normally be based in the same area.
Dublin-based employers, and employers based in adjoining counties, are divided between four PAYE districts located in Dublin. These districts are organised on a vocational basis. For example, all the newspaper industry employers are dealt with in one district and all the motor industry employers in another district.
Outside Dublin, employers' PAYE is dealt with in Athlone, Castlebar, Cork, Dundalk, Galway, Kilkenny, Letterkenny, Limerick, Sligo, Thurles, Tralee, Waterford and Wexford.
The main circumstances in which employees' tax affairs may not be dealt with by the local tax office arise in relation to an employer who has employees spread throughout the country, for example, in the public service, banks and other country-wide enterprises. This results in locally based personnel having their tax affairs dealt with in a centre different from their place of residence.
Dealing with all employees of an employer in one area has advantages for both employers and employees. An employer has a single definite contact point for all inquiries regarding his or her employees. The single contact point also makes it easier for employers to supply the information required by the tax office e.g. details of benefit-in-kind and expense payments. In addition, the tax office becomes familiar with particular administrative features of different employers. This avoids the position whereby various tax offices have to ask employers and employees repeatedly for the same information. It enables Revenue to give a better service to both employers and employees.
The Revenue Commissioners are mindful that this administrative system may result in some inconvenience to some PAYE customers from time to time and have taken a number of initiatives to minimise this.
Initiatives taken to date include:
—"Freepost" arrangements are in place for correspondence with Tax Offices.
—All tax offices now have greatly improved customer inquiry facilities for personal callers. Even if an employee's tax affairs are not dealt with in a local tax office, they can, nevertheless, conduct most tax business through that local tax office.
—The service given in the Dublin Central Revenue Information Office (opened in 1993) enables any taxpayer, irrespective of where his-her tax office is located, to walk in off the street and get his-her tax affairs processed there and then. About 200,000 customers availed of this service in 1995.
—In February 1996, a new central telephone information office was opened serving the needs of all taxpayers in the greater Dublin area. This gives employees and other taxpayers who are unclear as to the tax office handling their affairs direct access to a specially designed phone-in service, which will enable them to advance their tax business by phone. (This office can direct callers to a definite contact point at which their problems can be resolved or in straightforward cases resolve the problem there and then). Where telephone callers cannot be dealt with promptly contact numbers are taken and the calls returned.
—All PAYE taxpayers are supplied annually with a simple form which they can use to update their tax free allowances without visiting or phoning the Tax Office.
—All Tax Offices operate tax clinics at various locations throughout the country. These clinics are designed to provide access to the facilities of the Tax Office at convenient locations outside the tax office. In 1995, over 100 of these clinics were held at the following types of locations: factories, shopping centres and various trade and agricultural shows.
Administrative arrangements are continually under review. Should it become possible, in the future, to offer taxpayers the choice of having their affairs dealt with fully either in the local tax office or where their employer is dealt with, without reducing the efficiencies and other advantages arising from the current arrangement, this will be done.
