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File photo. Laura Hutton/Photocall Ireland

Revenue not ruling out back tax on pensioners

Declan Rigby from the Office of the Revenue Commissioners said that there will not be an across-the-board amnesty on pensioners who owe tax.

THE OFFICE OF the Revenue Commissioners has refused to rule out the possibility of back-taxing pensioners who have understated the amount of income they were receiving.

Speaking to Morning Ireland, Declan Rigby from Revenue said there would not be an amnesty on the tax that is owed by some who under-declared their incomes.

However, he said that more analysis would need to be carried out on the data the Revenue received from the Department of Social Protection, which led to the liabilities being identified.

“We have to see what the implications of the differing groups are after doing more analysis…and we need time to do that,” he said.

According to Rigby, the Revenue is concentrating on 2012 and he indicated that any back-tax would be targeted on people with a higher income.

Yesterday, 115,000 pensioners who receive a State pension, as well as a second source of income, were informed that they may have to pay more income tax this year.

“The variety involved in this is immense,” Rigby told RTÉ. “It may be that somebody has a very modest income and could see a €5 to €8 a week increase in tax.”

However, those on a higher income tier may have to pay up to €4,400 per year or €8,800 if married.

Ribgy explained that the onus was on pensioners to tell Revenue about their State pension if they were also receiving a salary, occupational pension or State pension.

Those over 65 earning more than €18,000 (or €36,000 if married) are liable to pay tax.

“It is a tricky area to interpret and understand,” conceded Rigby.

Anyone whose State pension is their sole income does not have to pay income tax and about 20,000 will end up paying less tax as a result of the data exchange between the department and Revenue.

Age Action has called for more information to be disseminated so State pensioners can ensure they are tax compliant.

Eamon Timmins, a spokesperson from the group, said there needs to be a clear, public information campaign from the Revenue Commissioners and the Department of Social Protection.

“The letters from the Revenue Commissioners stating that pensioners owe them monies as a result of underpayments going back a number of years, have caused anger among those who received them,” Timmons added in a statement.

The bottom line is that law-abiding citizens are now left with tax bills at the start of a year when there have never been as many demands on their pensions, and with new taxes and charges to pay. It will cause further hardship for many older people.”

Read more: 115,000 pensioners told: You’ll have to pay more tax>

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    Mute Nathan Wheeler
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    May 4th 2016, 10:52 AM

    Good guy China, mass murdering its own people for the glorious Communist future since 1949.

    Wally Mooney would love to spend time with his communist brethren.

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    Mute James O Conner
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    May 4th 2016, 10:53 AM

    I’d say your great craic in the pub Nathan

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    Mute Nathan Wheeler
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    May 4th 2016, 10:55 AM

    I will take that as a compliment !

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    Mute Ted Murray
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    May 4th 2016, 11:14 AM

    I think they’re more capitalunists these days.

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    Mute Sean Johnston
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    May 4th 2016, 11:17 AM

    You think they were bad Commies? Wait until this embracement of capitalism has run its course. We’ll be lucky if anyone is left alive to tell the tale.

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    Mute Barry Casey
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    May 4th 2016, 12:53 PM

    When do you think that will be Sean? I’ll put your Nostradamus type prediction down in my diary

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    Mute Patrick Hurley
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    May 4th 2016, 11:19 AM

    27 years for a political non-violent protest. And we think we have a corrupt system.

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    Mute Ó Connmhaigh
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    May 4th 2016, 1:22 PM

    Didn’t stop president Higgins and Irish politicians doing business with them.
    And then Higgins has the gall to tell the British that “a policy of amnesia won’t do” when it comes to facing up to injustices. Another cucumber sandwich, Dobby?

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    Mute Jeremiah A Craic
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    May 4th 2016, 10:45 AM

    A great bunch of lads

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    Mute Old Gordon
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    May 4th 2016, 12:55 PM

    Although they might be nominally communist, China does have some admirable traits. Without elections, they can plan long term without the issue of a new shower of moronic politicians ruining everything every five years.

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    Mute Leo Lowe
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    May 4th 2016, 1:06 PM

    And they would know how to deal effectively with water protestors.

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    Mute James Stratford
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    May 4th 2016, 5:17 PM

    Not everything is about water!

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    Mute John Reid
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    May 4th 2016, 3:02 PM

    The people who vote for the likes of the Marxist/socialist so-called People Before Profit, Anti-Austerity Alliance and Sinn Fein should read more articles like this, and about Venezuela and the rest of the countries which have adopted socialist/communist governments.

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    Mute David Clarke
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    May 4th 2016, 1:47 PM

    And your buddies Leo who have robbed this country blind and caused the deaths of hundreds who took their own life and sometimes took their kids as well you proud of that Leo the lion yea c.nt

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    Mute Pat Walsh
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    May 4th 2016, 1:36 PM

    Poor man, he may have been better off with the death sentence.

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    Mute paul kelly
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    May 4th 2016, 3:10 PM

    I love chicken curry

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