Written answers

Wednesday, 1 May 2013

Department of Social Protection

Tax and Social Welfare Codes

Photo of Ciara ConwayCiara Conway (Waterford, Labour)
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146. To ask the Minister for Social Protection further to Parliamentary Question No. 162 of 24 April 2013, if her attention has been drawn to the information contained in the response (details supplied) and further to this response, if she will specify the issues that need to be considered and addressed before her Department can make these deductions at source; if this is currently under active consideration; if there is timescale for same; and if she will make a statement on the matter. [20796/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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As I stated in my response to PQ 162 on the 24 April 2013, my Department has no role in relation to standard PAYE taxing procedures. As previously stated, the collection of taxes is a matter for the Revenue Commissioners.

In the context of its role in processing and making income support payments, the Department makes 87 million payments per annum to over 2 million recipients in any year. These payments are of various types; universal payments, means assessed payments, payments based on social insurance contributory history and grants. Payments can be once-off, based on short term need or of long term duration.

The operation of deduction at source arrangements for income tax purposes on social welfare payments would require detailed consideration of policy issues in relation to the operation of the income support system. Because of the sheer scale, variety and nature of payments made by the Department, such an arrangement would also require substantial development of IT systems and business processes and impose a significant additional administrative burden on my Department.

The Department is currently engaged in a major transformation programme to meet Government objectives in relation to activation and supporting the provision of integrated income support and activation services through Intreo to clients of working age. It has embarked on a major programme of business and system change to support these objectives and is focussing its development efforts in this regard.

In all of these circumstances, there are no plans under consideration within my Department for the development of deduction at source arrangements for income tax purposes.

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