Brian Cowen (Laois-Offaly, Fianna Fail)

I will consider some of the suggestions the Deputy has made. I indicated in my reply that, as a result of much discussion in this House and committees of the Houses, in consultation with the chairman of the Revenue Commissioners, efforts have been made to improve the ability to claim back ordinary credits to which taxpayers are entitled. The chairman has said in recent years that increasing amounts have been claimed. As a guesstimate, a further 20% or 25% may remain to be claimed. If that is the case and, according to the chairman, whose judgment and knowledge is better than most, the Revenue Commissioners are doing all they can by taking practical initiatives, particularly in medical relief which involves placing forms where people access medical services, then that is as good as they can do. In addition they run many publicity campaigns, provide information on their website and produce information leaflets etc.

The new computer system will not change the fact that the ultimate responsibility is on PAYE taxpayers to ensure their tax credit certificate is correct or to request an end of year review if they feel they have overpaid. However, the system allows PAYE taxpayers to access their records in a way that was not possible before, and to view their allowances, credits and details of pay and tax at any time. They can amend their tax credit certificate on the web, either to claim an allowance or credit not on a certificate or to change the amount involved. Taxpayers can request an on-line review or balancing statement based on Revenue records and confirmation that details are correct and complete. They can also receive an automatic repayment in certain cases where Revenue is fully satisfied from their records or recent contacts that a repayment is due.

The new computer system will also provide for details of taxable payments from the Department of Social and Family Affairs to be provided to Revenue on an updated and regular basis. Part of the new PAYE computer system will involve details of pay and tax from employers' P35 returns being made available much more quickly than before.

The combination of on-line access and amendment, together with the availability of quicker and more reliable information about pay and tax and payments from the Department of Social and Family Affairs, should help to increase the reliability and accuracy of the PAYE system and reduce the number of PAYE overpayments that remain unclaimed, which is one of the issues often discussed in this House.

The vast majority of taxpayers are conscious of the reliefs to which they are entitled. When claims are necessary they take the required action. That said, in reality some taxpayers do not claim all the reliefs to which they are entitled each year and may not have kept a record of expenditure on doctors' bills and prescription drugs so it requires an ongoing effort.

As I have said, introducing tax relief at source is another solution for some, though not all, credits.

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