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Older people with PAYE tax status

May 20, 2013
In January 2012, many older people with PAYE tax status, who had both State and Private Pension Incomes, received letters from the Tax Office, regarding the possibility of tax liabilities being underpaid. Many of these taxpayers were tax-adjusted for 2012 i.e. their Tax Credits were ‘updated’ so that tax, effectively, was paid at source on both Pension Incomes, for 2012 and forwards-going. The Revenue ‘campaign’ then seemed to end, with no further mention of 2011, 2010 and any other possible tax underpayments (for years earlier than 2012). The Revenue ‘campaign’, I am advised, has now resumed, with ‘new’ letters issuing last week re 2011 and earlier years. This topic only affects people, now aged 68 and over, who have not been filing annual IT Returns (and/or who have not, innocently or deliberately, been paying tax on their State Pension). The people that have been filing Tax Returns each year will not need to be concerned. The above could be very costly, if pursued, for anyone who (a) has Private Pension Income of circa €50,000 per annum or more and (b) has not been paying tax on DSP Pension Income for earlier years. Please do not hesitate to contact us if you have any concerns about the above, whether on your own behalf or on behalf of a family member or friend.
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