Róisín Shortall (Dublin North West, Labour)
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Question 139: To ask the Minister for Finance the reason the income levy is being deducted from the income of a person (details supplied) in Dublin 11 who is a medical card holder; and if he will make arrangements to rectify the situation. [19170/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that where an employee holds a full medical card at any time during the year they are exempt from paying the income levy. Where the income levy has been applied to a particular pay period or periods during the year and an employee presents to their employer/pension provider evidence of being in valid possession of a full medical card, the employer/pension provider should make an adjustment at the earliest possible time to refund the income levy deducted. If it is not possible to make an immediate refund, the employer should refund the income levy at the end of the year at the latest.

Where the employee has not been in continuous employment with an employer/pension provider throughout the year in question, the Revenue Commissioners, rather than the employer/pension provider, will deal with any refund of income levy due at the end of the year. The exemption does not apply to those who hold a GP only medical card.

Róisín Shortall (Dublin North West, Labour)
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Question 140: To ask the Minister for Finance the reason the income levy is being deducted from a private pension of persons (details supplied) in Dublin 9 in view of the fact that this income falls short of the exemption limit; and if he will make arrangements to rectify this oversight. [19171/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that each spouse is treated individually throughout the year by their employer/pension provider when the income levy is applied. According to Revenue records, the person in question is aged over 65; therefore the €20,000 per annum (€385 per week) exemption is applied to each pay period. However, no refund can be made during the year.

After the end of the tax year the person can claim a refund of the income levy from the Revenue Commissioners. He will be due a full refund of the levy provided the combined income of the couple (excluding any social welfare payments) is less than €40,000, double the single threshold.

In the case of the exemption for those aged over 65 who are married, the legislation provides for a refund after the end of the year because it would not be possible for the Revenue Commissioners, an employer or pension provider to know during the course of the year whether or not all of the requirements necessary for the exemption to apply have been met. This would include knowing, for example, if the person or their spouse had turned 65 in the tax year, if they had other income sources and the aggregate income from these sources, if there had been a change in employment circumstances or if there had been a change in marital status during the year.