John Bruton (Meath, Fine Gael)
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Question 241: To ask the Minister for Finance the statutory time allowed for the transfer of a tax deduction card for an employee from one employer to another employer, to ensure that they are on emergency taxation for as short a period as possible when each of the employer's records are on-line and are accessible via computer link; and if he will make a statement on the matter. [4819/04]

Charlie McCreevy (Kildare North, Fianna Fail)
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I am advised by the Revenue Commissioners that the tax deduction card is not transferred between employers when an employee moves from one employer to another employer.

Where an employee changes employment, the procedure is as follows: the former employer is obliged to complete a form P45 (Income Tax — Pay As You Earn — Cessation Certificate). Part 1 of the form P45 is submitted to the appropriate income tax district dealing with that employer. Parts 2 and 3 of the form P45 are delivered to the former employee. Once parts 2 and 3 of the form P45 are given by the employee to the new employer, that employer may apply the tax credits and standard rate cut-off point shown on it for the purposes of calculating the PAYE arising in the new employment. The new employer then sends form P45 (part 3) to the appropriate income tax district. A tax deduction card or a certificate of tax credits and standard rate cut off point is issued by the appropriate income tax district in the name of the new employer.

In the absence of the form P45 parts 2 and 3, the new employer is obliged to apply the emergency tax rates until such time as the employee produces a certificate of tax credits and standard rate cut off point in the new employer's name or a tax deduction card is issued to the new employer by the appropriate income tax district. The new employer refunds any income tax overpaid when the tax deduction card or tax credit certificate is received.

There is no statutory time limit in relation to the issue of a certificate of tax credits and standard rate cut off point/a tax deduction card for the new employer.