Seán Sherlock (Cork East, Labour)
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80. To ask the Minister for Finance the reason a person (details supplied) in County Kildare is paying tax on their State pension. [38432/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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As previously advised to the Deputy in my reply to Parliamentary Question 27496-19, that where a person is in receipt of both a State pension and a private pension, any income tax that may be due in respect of the State pension is collected by reducing the income tax credits applied to the private pension.

Revenue has advised me that it has re-examined the person’s tax position and calculated that their overall income, including both their Department of Employment Affairs and Social Protection (DEASP) pension and their private occupational pension, is below the annual exemption limit of €36,000. Consequently, the person is not liable for Income Tax and the information previously provided to the Deputy was incorrect.

Revenue has confirmed to me that following the re-examination, it applied exemption status to the person’s tax record. This will result in a refund issuing to them by their pension provider in respect of any tax paid in 2019. Revenue has also confirmed that it will issue refunds to the person in the coming days in respect of tax paid by them in 2017 and 2018.

Finally, Revenue has advised me that they have contacted the person directly to explain the revised position and to apologise for the error that occurred during the original review.