Overpaying pensioners get tax back

PENSIONERS who have paid tax for which they are not liable as a result of the exchange of information between the Revenue and the Department of Social Protection will be refunded in the near future.

Pensions Ombudsman Paul Kenny said yesterday he was happy that control was being brought to a controversy which erupted after 115,000 pensioners were informed last week that they could be liable for further tax in 2012.

Mr Kenny made these comments after a meeting with the Revenue Commissioners yesterday to discuss the fallout from the controversy.

Mr Kenny said the small group of pensioners who may already have had tax deducted incorrectly would receive refunds “quite quickly”.

He described his meeting with Revenue officials as “very productive and positive”.

The ombudsman said he had been reassured by Revenue that arrangements were being made for them to receive regular feeds of information from the Department of Social Protection so that changes to people’s benefits would be notified to the tax authorities immediately and tax credits adjusted accordingly. Mr Kenny said this would obviate the need for taxpayers to notify the Revenue of such changes themselves.

He stressed that the vast majority of people were tax-compliant and repeated his expression of sympathy and understanding for the worry which the recent Revenue letter had caused.

“Once this initial exercise is completed, there will be certainty and clarity into the future,” said Mr Kenny.

In general, people in receipt of both state and private pensions or other sources of income will not be liable for tax if their income is less than €18,000 for a single person or €36,000 for a married couple.

The volume of calls to special helplines set up by the Revenue remains high, although a Revenue spokesperson was unable to provide exact figures on the number of calls.

The Irish Seniors Citizens Parliament also met with Revenue officials yesterday but expressed disappointment that they were not given the level of detail for which they hoped.

Meanwhile, Revenue Commissioners chairwoman Josephine Feehily and officials from the Department of Social Protection face a grilling before an Oireachtas committee later today over the controversy which has sparked angry reaction from pensioners since last week.

The committee’s chairman, Labour TD Alex White, said its members were anxious to discuss the handling of the issue, particularly the communication of the tax situation for some older people.

“No one will argue with the necessity for tax compliance on the part of all citizens. However, many pensioners are unsure of where they stand on their tax liability and need reassurance.”