Ceist:
112 Dr. Upton asked the Minister for Finance the reason a person (details supplied) in Dublin 12 owes PRSI; and if he will review her tax entitlements. [11188/01]
Written Answers - Tax Entitlements.
I am informed by the Revenue Commissioners that the person and her husband have elected to be assessed for income tax on the basis of single assessment. Accordingly, maintenance payments which the person receives is reckonable income for the purposes of social insurance and, consequently, PRSI is payable at the Class S rate, in the circumstances involved. It is in the interests of the person involved to continue to make PRSI contributions as this may entitle her to an old age contributory pension and widow's contributory pension, in her own right, in due course.
The taxpayer is in receipt of maintenance payments of £700 per month for her own benefit. She is taxable under the self-assessment system in respect of this income. The taxpayer is in receipt of all of the income tax allowances and reliefs to which she is entitled. In the 1999-2000 tax year she had no income tax liability but her PRSI liability was £368, that is, income of £8,400, less PRSI exemption of £1,040, at the rate of 5%.