Wednesday, 9 December 2015
Department of Finance
68. To ask the Minister for Finance if it is standard practise for the Revenue Commissioners to issue the detailed calculations of a person's income to be included with the self-assessment notice of assessment, even if the net income of that person is below €2,000. [44304/15]
I am advised by the Revenue Commissioners that, from 2013, a taxpayer must self-assess when submitting his or her return of income. Self-assessment is where a taxpayer makes his or her own assessment to income tax or capital gains tax as appropriate. Prior to 2013, Revenue raised the assessment based on a person's income or capital gains on the basis of the information entered by them in the income tax return.
Where a taxpayer completes an income tax return on Revenue's Online Service (ROS); the online system provides a detailed calculation of the person's indicative liability based on the information on income, allowances, etc. that was included in the tax return. The indicative calculation of income tax, USC and PRSI was introduced to assist taxpayers in making their self-assessment, and meeting their legal obligations.
I am further advised by the Commissioners that for 2015 and subsequent years, where a taxpayer files a return on ROS and accepts Revenue's indicative calculation as their self-assessed liability, Revenue will attach a copy of this calculation with the acknowledgement of the self-assessment.
In relation to the situation where a person's net non-PAYE income is below €3,174, that person may contact Revenue to have their tax credits reduced to take account of this non-PAYE income. Where this can be done, the taxpayer will not be considered a 'chargeable person' and will not need to file a Form 11 nor make a self-assessment. The Deputy may wish to note that I have made provision in this year's Finance Bill to increase this limit from €3,174 to €5,000 for 2016 and subsequent years.