Terence Flanagan (Dublin North East, Independent)
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120. To ask the Minister for Finance if the deduction of local property tax from an invalidity pension has ceased in respect of a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [52516/13]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the deduction at source payment method in respect of Local Property Tax (LPT) from Department of Social Protection pensions commenced in July 2013. The system operates via an automated data exchange where Revenue electronically captures the information provided by the taxpayer and transfers it to the Department. The data exchange between the computer systems transfers the information exactly as provided by the taxpayer and Revenue cannot validate the accuracy of the details in advance. However, where a deduction fails or is not possible for whatever reason, the Department advises Revenue, who makes contact with the individual concerned.

In the specific case raised by the Deputy, the person in question filed his 2013 LPT 1 Return in May 2013 and requested that payment be deducted from his widower’s non-contributory pension. Revenue subsequently transferred the information to the Department of Social Protection, but the Department rejected the payment request because the person in question was not in receipt of such a pension and confirmed this to Revenue in July 2013. Revenue then made contact with the person in question and on the basis of clarifications provided by him, issued a new payment instruction to the Department in August 2013. Unfortunately this instruction was also rejected by the Department as the case was under review at that time and was outside of the normal processing channels.

On foot of the second rejection notice from the Department, Revenue wrote to the person informing him of the problem with the deduction at source instruction and requesting him to make alternative payment arrangements for both 2013 and 2014. Revenue also used the opportunity to outline the various payment options available to him in preference to deduction at source. Finally, Revenue has confirmed to me that given the circumstances of the case, a member of the LPT team will make direct contact with the person in the coming days and will explain the various payment options to him and will also offer any other assistance that might be required to help him meet his LPT obligations.