Terence Flanagan (Dublin North East, Fine Gael)
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Question 141: To ask the Minister for Finance if he will deal with a matter (details supplied); and if he will make a statement on the matter. [24614/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that the income levy is applied for payroll purposes on the date of the payment, not the date the pension/salary accrued or was earned. I should point that PAYE income tax, Pay Related Social Insurance contributions and Health contributions are deducted in the same manner. The rates of income levy to be deducted from payment of wages/pension are as follows:

Payments made between 1 Jan 2009 and 30 April 2009

1% on payments up to €1,925 per week

2% on payments greater than €1925 less than €4,810 per week

3% on payments greater than €4,810 per week

Payments made between 1 May 2009 and 31 Dec 2009

2% on payments up to €1,443 per week

4% on payments greater than €1,443 less than €3,365 per week

6% on payments greater than €3,365 per week

In the case in question the higher rate of income levy would apply to the payment made on 8th May (i.e. the rates applicable to payments made between 1 May 2009 and 31 Dec. 2009).

For the year 2009 annual rates of Income Levy are

The first €75,036 @ 1.67%

The next €25,064 @ 3%

The next €74,880 @ 3.33%

The next €75,140 @ 4.67%

The remainder @ 5%

If, based on the annual rates, the taxpayer is entitled to a refund after the end of the year, he can apply to his local tax office.

Leo Varadkar (Dublin West, Fine Gael)
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Question 142: To ask the Minister for Finance if he has introduced or will introduce a system whereby it would be possible for an employer who has made staff redundant to offset the 60% refund due to it against its tax liability; if he will provide details of this system; and if he will make a statement on the matter. [24677/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that taxes paid by employers include tax levied directly on the employer such as income tax or corporation tax and also fiduciary taxes such as PAYE income tax, income levy and VAT levied on the employees and/or customers of that employer. Also relevant are levies and contributions collected from employees such as PRSI and the Health Levy. There is no provision in taxation, social welfare or health legislation to offset statutory redundancy rebates against tax liabilities.

I am informed by the Revenue Commissioners that where a business is awaiting a rebate and it is experiencing particular difficulties in meeting its tax obligations because of any delay in receiving the rebate, the Revenue Commissioners will be accommodating in deferring for a reasonable period collection or enforcement action that might otherwise ensue. I am advised by the Revenue Commissioners that this arrangement is working satisfactorily in meeting the needs of businesses and the requirements of the Revenue Commissioners in such circumstances.