Willie Penrose (Longford-Westmeath, Labour)
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Question 47: To ask the Minister for Finance the reason a person (details supplied) in County Westmeath who earned income, between 30 November 2008 and 27 December 2008, and which money was duly paid in January 2009, had the 1% levy applied to same, despite same being earned prior to 1 January 2009, when the levy came into operation; if in these circumstances, the amount deducted in respect of the levy will be refunded to the person; and if he will make a statement on the matter. [2924/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that, on the basis of the legislation as enacted, the employer is legally obliged to deduct income levy from all payments of emoluments (which would include salary, bonus payments and other payments in the nature of pay) made to his or her employees where payment of those emoluments takes place on any date on or after 1 January 2009 irrespective of the period to which the payments relate. As the income levy was correctly deducted from the person (details supplied) in County Westmeath there is no basis for a refund to be made.

PAYE income tax, Pay Related Social Insurance Contributions and Health Contributions are all similarly deducted on arrears of pay, bonuses, and other payments in the nature of pay at the rates in force at the date of payment, notwithstanding that the payments relate to a year other than that in which the payment is made. The income levies introduced in the Finance Acts 1983 and 1993 operated on the same basis.