Written answers

Thursday, 12 January 2012

Department of Social Protection

Tax and Social Welfare Codes

5:00 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 156: To ask the Minister for Social Protection when she transferred information to the Office of the Revenue Commissioners relating to 560,000 pensioners that resulted in 115,000 pensioners being informed of additional tax liability. [1796/12]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 157: To ask the Minister for Social Protection when she was requested by the Office of the Revenue Commissioners to provide the information that led to 115,000 pensioners being informed of additional tax liability. [1797/12]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 158: To ask the Minister for Social Protection the additional information that has been requested by the Office of the Revenue Commissioners in relation to pensioners tax liability. [1798/12]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 159: To ask the Minister for Social Protection the cross governmental agency information transfer procedures that have been put in place since March 2011 in relation to tax liability and welfare payment recipients. [1799/12]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 160: To ask the Minister for Social Protection the way the pension tax issue will affect our senior citizens and particularly those under the fair deal scheme in nursing homes; and if she will clarify this matter. [1807/12]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Question 161: To ask the Minister for Social Protection her views on the huge concerns from our pensioners on the tax issue. [1808/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
Link to this: Individually | In context

I propose to take Questions Nos. 156 to 161, inclusive, together.

For the past number of years, my Department has been actively engaged in data matching with other Government Departments and public bodies for control purposes. To this end, there is an extensive legal structure to support the sharing of data for the purpose of controlling the entitlement and payment of benefits. The legislative provisions that allow for the specific sharing of data – with the Revenue Commissioners and other Government Departments and agencies - are contained in section 261 of the Social Welfare (Consolidation) Act, 2005. In exercising these functions, the Department also operates in accordance with the relevant data protection legislation.

One of the Department's primary relationships in relation to data sharing is with the Revenue Commissioners. In recent years, bilateral liaison with Revenue has been improved through the establishment of a High Level Group at Management Board level, whose purpose is to ensure on-going collaboration and interaction between the two bodies, including in relation to social welfare fraud and tax non-compliance. Both organisations are working together with a view to aligning expertise and information across their operations. In this context, a number of working groups have been established which are looking at a range of specifics issues, including that of social welfare abuse and tax compliance.

In this context, it is important to emphasise that data exchange operates on a two-way basis between the Revenue Commissioners and the Department and has been on-going for many years.

On foot of a specific data matching exercise carried out by the Department in late 2011, following work done by one of the High Level Group's sub-groups, as outlined above, some 563,800 records of pensioners were provided to the Revenue Commissioners on 1st December 2011. The data in question related to customers in receipt of five social welfare schemes, namely state pension state pension (contributory), state pension(transition) state pension (non-contributory), widow's/widower's/surviving civil partner's pension and invalidity pensions. The data provided contained the customer's PPS number, name, pension type and rate of payment.

The Deputies should note that this is part of an on-going policy to enhance data sharing between the Department and other public service bodies. As technology develops, in the Department and elsewhere, it is expected that the exchange of data with other organisations will continue to be improved.

The taxation of all citizens is a matter for the Revenue Commissioners. However, in the case of social welfare payments which are subject to tax, the Department notifies its customers that their payments are taxable and that the customer should contact his/her local tax office in this regard. A notice to this effect is contained in the award letter issued by the Department to the customer. These leaflets are available for download from the Department's website (welfare.ie) and are sent out to the customer, along with the relevant application form for the schemes, when an enquiry is made about entitlement. The Department's website also contains information on this matter and with effect from Monday 9th January, a link to the relevant page on the Revenue website from the Department's website has also been set up.

With regard to the Fair Deal scheme, each applicant undergoes a financial assessment of income and assets in order to calculate their contribution towards the cost of care. Should there be any change to any individual's financial circumstances, it is open to the individual to seek a review of their contribution by contacting the local HSE Nursing Home Support Office.

Comments

No comments

Log in or join to post a public comment.