Written answers

Tuesday, 28 January 2014

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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187. To ask the Minister for Finance the number of persons paying PAYE in 2012 but who did not file an income tax return for that year. [3657/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a PAYE taxpayer is regarded, generally, as an individual whose:

- Main source of income is taxed within the PAYE system and

- Non-PAYE income (if any) e.g. rental income, dividends, etc. is taxed by reducing their tax credits and tax rate bands, and

- Gross non-PAYE income is less than €50,000 and their net non-PAYE income (if any) is €3,174 or less.

At the end of 2012, there were approximately 2.3 million individuals taxed under the PAYE system on some or all of their income, representing about 1.7 million cases, when account is taken of the joint assessment basis.

The Deputy will be aware that the PAYE system has been designed so that by the end of each tax year in most instances the correct amount of tax will have been deducted and they will neither be due a refund of tax nor owe any tax.  PAYE taxpayers, therefore, are not required to complete an annual tax return (Form 12 for PAYE taxpayers) unless they are requested to do so by an Inspector of Taxes under Section 879 Taxes Consolidation Act 1997.  They are entitled, if they so wish, to submit a Form 12 Return of their own volition which a number of PAYE taxpayers do annually, principally in the context of a change in circumstances or to claim a tax credit or a tax refund.

I am further advised that to date approximately 34,500 tax returns have been received from PAYE taxpayers as defined above in respect of the year 2012.

However, many people taxed under PAYE are also taxed under the self-assessment system for example because they have additional income sources or are jointly assessed with a self assessed individual.  These taxpayers are required under the Taxes Consolidation Act to complete an annual tax return (Form 11).  To date, almost 254,000 cases with a PAYE income have completed a Form 11 for 2012.

The Commissioners also inform me that they are planning to release an online Form 12 for PAYE taxpayers during the first half of 2014.

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