The Government did not withhold information in the budget about its intentions to tax some pensioners, the Minister for Jobs, Enterprise and Innovation Richard Bruton has said.
He was responding to opposition claims that the Government was aware of the move since November.
Minister Bruton said the Government made it clear that the Revenue Commissioners have the power to obtain information from other Government Departments about payments.
He told RTÉ's The Week in Politics programme, which will be broadcast tonight, that the Government did "make provision that would bring in revenue," this year.
He said the Revenue Commissioners would collect what is owed to them in a fair manner from everyone in 2012.
However Minister Bruton admitted the move by the Revenue Commissioners to send pensioners letters last week had created confusion.
Meanwhile the Pensions Ombudsman has said it is "disturbing" that people who were not liable for any extra tax on pension income have received letters from Revenue.
Revenue sent letters to 150,000 people about their tax compliance, including those claiming widow's and widower's pensions after an examination of Department of Social Protection files.
Yesterday, Revenue clarified that 115,000 of these people were told they will have to pay extra tax in 2012.
Groups representing older people have criticised Revenue for its handling of the issue, saying many pensioners were unnecessarily worried.
The Pensions Ombudsman Paul Kenny told RTÉ News that it was disturbing that those who were fully tax compliant were still contacted by Revenue.
Revenue's 1890 phonelines opened for an extra day yesterday to deal with the high volume of calls on the issue.
Telephone helplines will re-open tomorrow morning for those concerned about their tax.
Age Action has warned that Revenue could be busy dealing with these queries for the next few weeks.
