Vol. 481 No. 5
76 Mr. Aylward asked the Minister for Finance whether the correct tax free allowances have issued to a person (details supplied) in County Kilkenny; and whether the correct rate of PRSI deductions are being made in view of the fact that this person is currently in receipt of a widow's pension. [16626/97]
I am informed by the Revenue Commissioners that an amended certificate of tax-free allowances was issued to the taxpayer on 2 October 1997.
The taxpayer is in receipt of a pension from the Department of Social, Community and Family Affairs. This pension is taxable but is paid gross by the Department of Social, Community and Family Affairs, i.e. without tax being deducted. The tax on the pension is collected by reducing the taxpayer's taxfree allowances by an amount equal to the pension she receives. The taxpayer's gross taxfree allowances amount to £9,048 and her pension is £4,834. The taxpayer's net taxfree allowance for the current tax year 1997-98 is therefore £4,214.
The inspector of taxes has written to the taxpayer's employers requesting that her PRSI deductions be amended to the rate appropriate to a widowed person.
