Written answers

Tuesday, 16 April 2013

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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To ask the Minister for Finance the reason a person (details supplied) in County Wexford has seen an increase in the income tax being taken from their private pension; the amount of additional tax that is being taken form current pensions then in past years; and if he will make a statement on the matter. [17685/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the increase in PAYE deducted from the individual's private pension for the tax year 2013 is attributable to the fact that the tax credits for 2013 have been restricted in order to collect an underpayment of tax which arose in the tax year 2011. The underpayment for 2011 arose because the Department of Social Protection pension figure included in the Tax Credit Certificate for that year was understated. A P21 balancing statement for 2011 issued to the person in question on 27th April 2012 and advised that the underpayment would be collected by reducing the tax credits in 2013. The collection of the underpayment in 2013 means a reduction of €11.16 per week in the net pension. If this is causing difficulty, the person can contact the Wexford Tax District and if he wishes the underpayment can be spread over two or three years i.e. 2013 / 2014 or 2013 / 2014 / 2015. The contact phone number is 053 9149300.

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