Róisín Shortall (Dublin North West, Labour)
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Question 149: To ask the Minister for Finance if he will establish with the Revenue Commissioners whether a person (details supplied) in Dublin 11 has been granted a PAYE credit for themself only and not their spouse; if this has been the case in all previous years; the practice in respect of a PAYE credit for a person who is a qualified adult on a spouse's State pension; and if he will make a statement on the matter. [26269/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the PAYE tax credit is due against a variety of sources of income including occupational pensions and pensions payable under the Social Welfare Acts. However, irrespective of the number of sources of income against which the PAYE tax credit may be due, an individual is entitled to only one PAYE tax credit (currently €1,830) per annum.

As regards a pensioner couple where each spouse is in receipt of a separate social welfare pension plus an occupational pension, each spouse is entitled in their own right to the PAYE Tax Credit.

As regards a pensioner couple where one spouse is a dependant 'qualifying adult' on the other spouse's pension book, the PAYE tax credit is due only to the spouse who has an entitlement to the pension and a separate PAYE tax credit is not due in respect of that element of the pension payable in respect of a dependant 'qualified adult'.

For the couple in question, tax returns were submitted for the year 2006 & 2007. In these returns the pension was declared as paid to each of them separately and two PAYE Credits were claimed. However as one spouse is a dependant 'qualifying adult' on the other spouse's pension book, one PAYE Credit is only due. Amended assessments issued for both years to show the correct position and the tax outstanding has been paid.