Tony Gregory
Ceist:154 Mr. Gregory asked the Minister for Finance if a person (details supplied) in Dublin 7 will be paying less tax now at 75 years of age under the small income exemption scheme. [13788/97]
Written Answers. - Small Income Exemption Scheme.
I am informed by the Revenue Commissioners that with effect from the current tax year 1997-98, the taxpayer has been granted the income tax exemption limit appropriate to persons who are aged 75 years or over, that is, £5,200. Although any income over this limit will be taxed at the rate of 40 per cent the taxpayer will pay less tax than if she were taxed under the normal tax system.
However, the taxpayer's Department of Social Welfare pension had been underestimated by £500 when her original certificate of tax-free allowances for 1997-98 was drawn up. When her tax-free allowances were amended to take account of the underestimation, and also of the increase in social welfare payments which came into effect in June, this resulted in her tax liability being increased. She is now paying approximately £3 tax per month more than she has been paying.