Bernard Allen (Cork North Central, Fine Gael)
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Question 138: To ask the Minister for Finance if he will make a full statement on the ongoing problems with the computer system in the tax offices here. [12685/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that they introduced an entirely new computer system for PAYE last October — the first total redesign of the system in 40 years. This major new development was necessary not only to modernise the whole PAYE computer system, which was overdue, but also to allow for the provision of on-line services for PAYE taxpayers, which will become available later this year.

I am advised that there were some initial difficulties with the changeover to the new system, and in the recent "bulk issue" of 2.2 million tax credit certificates, the entitlements of a small minority of cases were affected. Revenue assures me that it had a very active process of identifying any such customers and, where appropriate, automatically issued amended notices to employers to enable them to immediately adjust the payroll deductions. Amended tax credit certificates also subsequently issued to the individuals concerned.