Liam Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 1181: To ask the Minister for Social and Family Affairs if he will allow farmers who had no taxable income and who, therefore, paid no PRSI contributions to buy their PRSI contributions even at this late stage to allow them qualify for old age pension and the benefits attached to such pensions; and if he will make a statement on the matter. [2448/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Self-employed persons, including farmers — aged between 16 years and 66 years and with reckonable income that exceeds the current insurable limit of €3,174 per annum must pay PRSI contributions at Class S. In general, payment of class S PRSI is made through the Office of the Revenue Commissioners who act as agents in the collection of PRSI. Self-employed persons return PRSI contributions through the self-assessment process to the Collector-General, along with their income tax and health contribution. The social insurance contribution is due at 3% of reckonable income, or €253, whichever is the greater, in addition to the health contribution — where applicable.

The basis of assessment for tax differs somewhat from that of social insurance and, as such, it is possible for a person to be without a taxable income while still having a liability for PRSI. In addition to those who are specifically provided for in legislation, these include cases where a self-employed person is deemed by the Revenue Commissioners not to have a tax liability. In such cases PRSI is not collected automatically by the Revenue Commissioners but referred to my Department to determine if a PRSI liability exists. Where a PRSI liability exists, social insurance contributions are collected by the Self-Employment Section of my Department. Where a self-employed person ceases compulsory social insurance or where his or her income falls below the €3,174 limit, an application may be made to become a voluntary contributor to maintain his or her social insurance record for pension purposes. To become a voluntary contributor after self-employment, a person must have worked and paid PRSI for at least 260 weeks and must apply within 12 months after the end of the tax year in which he or she last paid PRSI. There is no provision in legislation to collect PRSI contributions from those who are not insured and in circumstances where they are not properly due. Where a person should have been paying PRSI contributions in their own right but did not, there is scope for the collection of outstanding contributions to establish entitlement to a contributory pension.