Terence Flanagan (Dublin North East, Fine Gael)
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Question 145: To ask the Minister for Finance his views on a matter (details supplied) regarding the tax system; and if he will make a statement on the matter. [15501/11]

Michael Noonan (Limerick City, Fine Gael)
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The matter raised relates to a general concern about the basis for paying preliminary tax before the end of the tax year. I am informed by the Revenue Commissioners that there are a number of options available to self assessed taxpayers in relation to the payment of preliminary tax, in order to avoid the possibility of interest charges arising. In general, these are that the preliminary tax payment for a tax year must be not less than:

90% of the income tax payable by the individual for the relevant tax year, or,

100% of the income tax payable by the individual for the preceding tax year, or,

105% of the income tax payable by the individual for the pre-preceding tax year, where the individual has made arrangements with Revenue to pay preliminary tax by direct debit.

It is a matter for each taxpayer to decide whichever option best suits their particular circumstances.