Vol. 534 No. 2
81 Mr. Finucane asked the Minister for Finance if a person (details supplied) in County Limerick, who is in receipt of a retirement pension and a pension from the health board, should have income tax deducted; and if he will make a statement on the matter. [10348/01]
The position is that it is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle the majority of social welfare payments, including social welfare pensions are, therefore, reckonable as income for tax purposes. This means that the social welfare pension is combined with any other income a person might have for tax purposes. Of course, the extent, if any, to which taxation will actually arise in a given case will essentially depend on the level of other income that a recipient or the recipient's spouse has in the same tax year.
I am informed by the Revenue Commissioners that in the case referred to by the Deputy, the taxpayer's pensions are liable to income tax. The tax on both pensions is deducted from her health board pension.
