Joanna Tuffy (Dublin Mid West, Labour)
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Question 37: To ask the Minister for Finance when the Revenue Commissioners on-line service will provide an on-line facility for payment of the new income levy for businesses and individuals who make their returns to the Revenue Commissioners through the on-line system; the system used at present by Revenue for calculating the amount of income levy received since it's introduction on 1 January 2009; and if he will make a statement on the matter. [14095/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware the income levy is effective from 1 January 2009. I am advised by the Revenue Commissioners that the arrangements for the introduction of the Income Levy were focused on limiting administrative and compliance costs for employers. Employers incorporate the payment of the Income Levy into the existing monthly form P30 and the Income Levy is included with PAYE tax payments. This mirrors the current arrangements for payment of the Health Levy (and previously the Employment Levy), which is also incorporated in the form P30 and is included with PRSI payments. The monthly apportionment by Revenue between payments of PAYE tax and Income Levy for the 2009 tax year is determined by applying a breakdown formula derived from a tax-forecasting model maintained by Revenue. The precise breakdown between PAYE tax and the Income Levy will be available in the first quarter of 2010 on receipt of the forms P35 from employers. Facilities already exist for businesses to file both the P30 and P35 on-line.

A similar approach will be taken in respect of payments of Income Tax and Income Levy for self-assessed individuals for 2009. In calculating their Preliminary Income Tax for 2009, due no later than 31 October 2009, the self-assessed individual will be required to add the income levy to the amount of their income tax payment due. Such taxpayers will pay a single amount and Revenue will apportion the payment between Income tax and Income levy.

The 2009 tax return for self-assessed taxpayers is not due until 2010. In this context the on-line service for self-assessed individuals to file returns for 2009, providing for a separate calculation of tax and levies due, is expected to be available by 1 January 2010.