Minister: Majority of pensioners will not be pursued for back tax

The Revenue Commissioners will not pursue the majority of pensioners for back tax, according to Junior Minister Jan O'Sullivan.

Speaking in Limerick this morning, she said the Government needs to learn lessons from how the whole issue of tax on second pensions has been handled by Revenue.

Around 20,000 people have contacted the Revenue Commissioners’ helplines since Friday, when it emerged 115,000 people aged over 65 will have to pay extra tax this year after a mis-calculation in their credits.

Revenue have been criticised for the way in which these elderly people were told they would have to pay more tax and the body says it will now review its communications campaign.

Minister O'Sullivan said she is confident most pensioners will not face a hefty bill for back tax.

"The idea that they might owe back money is what really frightened people," she said.

"By and large, I believe that the Revenue won't go after people for back tax, so people need to be reassured on that score.

"And I think we do need to learn lessons for the future.