Dáil Éireann Debate, Tuesday - 2 February 2010
231 Deputy Jack Wall asked the Minister for Finance the position regarding the case of a person (details supplied) in County Kildare who will take voluntary redundancy; the tax liability that will apply to them; their entitlement to social welfare benefit; and if he will make a statement on the matter. [4690/10]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that generally speaking, all payments made by employers to employees are regarded as "Pay" for tax purposes. Lump sum payments on a redundancy or a retirement, however, qualify for special tax treatment — they may be exempt from tax or may qualify for some relief from tax.
The person concerned should submit a completed tax return for the relevant year which should include details of the lump sum payment to the Revenue Commissioners, East and South East Region, PAYE Mail Centre, P.O. Box 1, Rosslare Harbour, Co Wexford.
