Michael McGrath (Cork South Central, Fianna Fail)
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Question 75: To ask the Minister for Finance if he will provide a detailed update on the Revenue's initiative launched in January 2012 to target a compliance campaign at persons in receipt of a State pension and a private occupational pension; the number of such persons that are now estimated to have an additional tax liability; the estimate of the amount of money expected to be raised in 2012 from this initiative; and if he will make a statement on the matter. [17469/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that deductions of income tax for 2012 continue to be made by relevant employers/pension providers in accordance with instructions issued to them in late December 2011 which would have taken account of up-to-date DSP pensions information supplied to the Commissioners by the DSP. In addition, the Commissioners advise that they have issued tax exemption certificates to the employers/pension providers of some 16,000 taxpayers who they believe will be exempt from tax for 2012 even with the full DSP pension taken into account and more work is going on in that regard to identify any other DSP recipients who may be exempt from tax in 2012. Furthermore, the Commissioners state that where they have the full information for 2011 required to enable them review the tax affairs of as many of the 20,000 taxpayers that they specifically wrote to on 30 December 2011, who it appeared had been over-deducted tax, they will do so shortly and will refund any monies due.

The Commissioners further advise that in the past number of weeks they have published additional "Frequently Asked Questions" material on their website which provides further clarity on the DSP pensions issue. Also, very recently published on their website and soon to be available in paper form, is a shortened version of the annual return of income form for 2011 that is completed by PAYE employees and pensioners, known as the Form 12S. This re-designed form should make it easier for PAYE taxpayers to comply with their tax obligations.

In addition, at the meeting of the Joint Committee on Finance, Public Expenditure and Reform on 11 January 2012, the Chairman of the Revenue Commissioners indicated that additional analysis had to be carried out on those cases where it appeared the risk of tax loss was greatest. This work is still ongoing and will continue during April 2012. The Commissioners, therefore, are not yet in a position to state the number of persons who will have additional liabilities.

Lastly, regarding the question of the amount of money to be raised in 2012 from the DSP pensions initiative, I am further advised by the Revenue Commissioners that they are satisfied that the published Budget day estimate of €45 million will be met.