Dáil debates

Tuesday, 21 February 2006

Leaders' Questions.

 

3:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

I want to raise with the Taoiseach the issue of tax incentives. Last week we discussed in the House the question of tax reliefs given on various schemes. They have cost €1.56 billion over the past five years. It is obvious that the cost of the reliefs was twice the value of the benefits enjoyed. Most of these reliefs went to a small number of high-earning individuals, some of them developers, some land owners. The point made was that the Government's failure to properly evaluate incentives and undertake a full cost-benefit analysis has cost Irish taxpayers hundreds of millions of euro.

That is in stark contrast to the treatment of hard-working PAYE workers in respect of unclaimed tax rebates. Deputy Bruton has been promoting this campaign for several years. Fine Gael highlighted a strong campaign last year on this and the results were startling. In 2003 €185 million was paid back to 230,000 workers. Last year the figure rose to more than €300 million in respect of 386,000 workers and that is still a long way from tackling the overpayments due. It is estimated that in respect of medical expenses, bin charges and private rents, more than 60% of refunds are not claimed. In these three areas alone at least €250 million would be paid back to PAYE workers, were these claimed.

Why is there no really strong public information campaign in respect of the rights of PAYE workers and the simplicity that should be involved in making claims? If 60% greater compliance was due to the Revenue Commissioners, an all out attack would be made to secure the outstanding moneys. However, when the boot is on the other foot, the Government is inclined to sit back and just let this happen. I know it is the responsibility of each taxpayer to claim back what he or she is due. Many of them may not be aware of their entitlements, however. In that sense the Government should run a strong information campaign for PAYE workers. In those three areas alone, medical expenses, private rents and bin charges, more than €250 million is outstanding. Perhaps the Taoiseach might give this matter some thought.

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