Brian Cowen (Laois-Offaly, Fianna Fail)

The PAYE system has worked. I have given a detailed reply explaining how it works and that it is a cumulative deductive system. The equity of the position is safeguarded by the fact that claims are speedily dealt with. It is impossible to devise a system where there is an exact balance for every taxpayer, of whom there are 1.6 million, depending on their circumstances, for example subsequent claims for medical expenses or being partly self-employed during the course of the tax year.

There are particular circumstances which can arise and for which a taxpayer can claim at the end of the tax year when he or she receives his or her balancing statement. From the total of €7.2 billion collected under the PAYE system for the year 2003, the amount of overpayment was €185 million in respect of those claims already received and processed. That sum may rise to a figure of over €300 million. In the context of the total amount collected, it is probably approximately 3% or 4%. We are introducing further software into the system to enable taxpayers to interact and interface with the Revenue Commissioners on these issues in a way which will ensure the speedy resolution of any issues that might arise, depending on the individual circumstances of any taxpayer.

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