Joanna Tuffy (Dublin Mid West, Labour)
Link to this: Individually | In context

Question 161: To ask the Minister for Finance if he will seek improvements in communications between the Revenue Commissioners and members of the public regarding the circumstances in which 115,000 pensioners were informed that they may have to pay additional tax bills this year; if his attention has been drawn to the upset, distress and the inconvenience caused to pensioners who were not familiar with the way the tax system works and to some 15,000 who received letters who were not even liable for additional tax; and if he will make a statement on the matter. [2548/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The matter of communications between the Revenue Commissioners and members of the public are the responsibility of the Commissioners and they use a variety of methods and means to explain the many complexities of taxation. Regarding the matter of the communications between Revenue and the 115,000 recipients of DSP pensions who may have a potential additional tax liability, I am advised by the Revenue Commissioners that two different types of letters were issued to this group of taxpayers which were designed to cover their particular circumstances and explain how the potential additional tax liability arises. Each letter included a copy of the individual's own tax credit certificate for 2012 as well a note explaining how tax is deducted on DSP pensions. The Chairman of the Revenue Commissioners has already explained at the recent Joint Oireachtas Committee meeting that due to the short timeframe available to update the PAYE records from receipt of the information from DSP in time for the start of 2012, that the standard of service that we come to expect from Revenue was not met on this occasion. The Chairman went on further at the Committee meeting to publicly apologise for the distress caused to some people on receipt of the letters concerned.

On the issue of the 15,000 letters that were sent to people who may be potentially exempt from PAYE on their total income altogether, I am informed by the Revenue Commissioners that this particular letter was also aimed at reassuring anyone who, although ultimately exempt from tax, might have found that their private pension was temporarily taxed as a result of the information supplied by the DSP being updated into Revenue's records. The particular letter advised this category of taxpayer that they were not required to do anything for the moment and that Revenue themselves would resolve the issue for anyone affected. The Chairman confirmed at the Committee meeting that Revenue will issue an exemption certificate for these cases "in a short number of weeks".

Lastly, as also indicated at the Joint Committee meeting, the Revenue Commissioners advise that they will be reviewing their approach to communications in the light of the issues raised following on from the issue of the letters to DSP pension recipients and they will be working with Age Action and the Irish Senior Citizens' Parliament as well as other groups representing pensioners and other DSP pension recipients to identify how they can improve their communications with that group.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 162: To ask the Minister for Finance if a person (details supplied) in County Cork should be paying income tax and the universal social charge in 2012. [2554/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The most recent figures available to the Revenue Commissioners, those for the 2010 tax year, indicate that the person concerned will have a small tax liability in the current year arising from the manner in which he and his partner have shared their tax credits. If he wishes to discuss the matter further he should contact his local Revenue Office at Revenue House, Blackpool, Cork or phone Mr. Diarmuid O'Connor at (021) 6027056. The person concerned is exempt from the Universal Social Charge for 2012 and an amended Tax Credit Certificate in this regard issued to him on 13th January 2012.