Richard Bruton (Dublin North Central, Fine Gael)
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Question 87: To ask the Minister for Finance if there has been a change in the practice of monthly collection of PAYE and PRSI by the Revenue Commissioners; and if this has implications for the timing of monthly flows into the Exchequer. [23717/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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With the exception of small and medium businesses authorised by Revenue to make their PAYE/PRSI payments quarterly, the due date for the payment, by employers, of PAYE/PRSI covering the PAYE/PRSI for any given month is the 14th of the following month; for example the PAYE/PRSI for the month of June is due for payment to Revenue by an employer by July 14th.

The Deputy will be aware that in my Budget Statement on 14 October last I announced that I would be providing a general extension to the then existing deadlines for filing returns and paying tax where those returns and payments are made via the online systems. A general extension where a customer both pays and files electronically has been implemented by Revenue. In the case of monthly payments of PAYE/PRSI the time limit of the 14th of the month following a given month referred to, has been extended to the 23rd. This change has been effective since January 2009.

There are no implications from these changes for the timing of monthly flows into the Exchequer.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 88: To ask the Minister for Finance if she will make provision that married one income pensioners can arrange that they will be able to receive relief at source from the new levy if their income is less than €40,000 and not have to seek a refund at the end of the year. [23721/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy legislation provides for an exemption for individuals aged 65 or over where their income does not exceed €20,000. Married couples, where one or both are aged 65 years or over and whose combined income does not exceed €40,000, are also entitled (notwithstanding that one spouse may have income in excess of €20,000) to make a claim to Revenue after the end of the tax year for a refund of any income levy deducted.

This combined €40,000 married couple exemption can only be given after the end of the tax year as it would not be possible for 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 martial status during the year.

Income levy is deducted on a non-cumulative basis and the basic unit of taxation for the levy is the individual; it does not allow the same flexibility as the cumulative PAYE system in dealing with aggregate income from different sources or the income of married couples. I am informed by the Revenue Commissioners that it would not be possible to put in place a reliable structure (i.e., one that would not leave open the possibility of significant underpayments) that would allow employers or pension providers to grant the combined €40,000 exemption at source, during the tax year, to married individuals aged 65 or over.

I am assured that the Revenue Commissioners will process income levy refund claims as quickly as possible when they are received after the end of the tax year and will conduct a targeted publicity campaign aimed at encouraging pensioners to claim a refund if they consider they may have overpaid the income levy.