Contributory pension tax issue

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lukas888

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A self employed friend is due to receive his contributory pension (class S) next March.He meets the full criteria regarding his PRSI contributions and is due the maximum weekly payment.He has a revenue judgement against him for unpaid income tax from years ago that is unpaid and he will never be in a position to discharge.His ongoing income tax liabilities are fully up to date.He has now read on the Citizens Information site that if income tax is outstanding he will not receive his pension.I presumed that if his contributions were paid that he is entitled to his pension.I have searched the revenue website extensively and can not find any legislation confirming outstanding income tax will lead to non payment of his pension.Hopefully a tax/pension contributor can clarify.
 
Just to remind you that State pensions are paid by the Dept of Social Welfare not Revenue. If all contributions are paid to date he should receive his pension. Dealing with revenue is a seperate matter.
 
Thank you for reply, yes it's the dept of social welfare that pays but when his PPS number is entered on his application form will it set off an inter department red flag? I would like to ascertain if the Revenue have any right to instruct Social Welfare to withhold payment.
 
lukas888 said:
Thank you for reply, yes it's the dept of social welfare that pays but when his PPS number is entered on his application form will it set off an inter department red flag? I would like to ascertain if the Revenue have any right to instruct Social Welfare to withhold payment.
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No they can't stop the pension from being paid.

They could get an attachment order to instruct DEASP to pay it to Revenue instead of your friend though.

If it is an old legacy debt that is no longer being actively pursued, that would be unlikely though.
 
Interesting point regarding attachment order but they are restrictive in a lot of scenarios.They can raid your bank account easily if you have funds.
As regards your wages before they can instruct your employer to pass on a part of your money you have to have 50K gross salary if married. and they only seem to work if the debt is modest >20K. They also only place an attachment for a reasonable period of time, their not really suitable for a large debt that would take forever to discharge.I am still none the wiser regarding the revenues powers to interfere with contributory pension entitlements.
 
My mobiles acting up but if enter class S Prsi on the search button in the Citizens Information website it will take you the relevant page.Under rules it says (If you are aged over 66 and still owe class S PRSI contributions your state pension will only be paid from the date you have paid all outstanding contributions and any outstanding income taxes in full ).As this is my first time reading the specific wording other than my friends version you could interpret it to refer to his final years return ?
 
I am inclined to agree with torblednam in that if Revenue are no longer actively pursuing the debt then your friend should receive his contributory OAP.
 
I have never come across a situation where pension was refused or reduced because of outstanding taxes. As revenue acts as collector of PRSI contributions on behalf of Social Protection, this is where confusion arises.
My understanding is if all outstanding contributions (class S) are fully paid up he cannot be refused a pension that he has paid for.
 
Thanks to all for your very helpful input.I have passed on all information to my friend.I am also now convinced that his due payment is secure.
 
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