Brian Cowen (Laois-Offaly, Fianna Fail)

I assume the Deputy is referring to the presentation by the Irish Taxation Institute, ITI, to the Joint Committee on Finance and the Public Service on 17 January on the under-claiming of allowances and reliefs by PAYE taxpayers.

I understand the ITI, in its presentation, suggested the introduction of a "one claim, one form" approach for securing tax reliefs. This would be a retrograde step because, under the current system, no forms are required for claiming most PAYE tax credits. Revenue operates a self-assessment ethic and assumes that people are honest. For example, the majority of claims to amend tax credit certificates are made over the telephone, via Revenue's lo-call 1890 service.

Forms are required in some instances, for example, medical expenses relief. Where Revenue requires a form to back up a claim, it generally prompts the claimant to complete the form every year. For example, anyone who claimed medical expenses relief in excess of €1,000 will receive a claim form in the post every year. This also applies in the cases of elderly persons who claim deposit interest retention tax, DIRT, relief. As announced in the recent budget, Revenue is working with the credit institutions to establish a system which would allow the elderly and incapacitated persons to obtain interest free of DIRT from 2007 onwards.

Revenue's philosophy regarding PAYE credits is, wherever possible, that taxpayers who claim once will keep a credit forever. This approach works well for standard credits with fixed amounts. Any suitable credit, once allowed, is generally carried forward from year to year by the Revenue computer system. In addition, many of the more significant reliefs have been made virtually automatic, either through the introduction of tax relief at source, TRS, or the automatic carry forward of the reliefs. For example, mortgage interest relief and medical insurance relief are provided at source through the taxpayer obtaining a reduction in repayments or premiums equivalent to the tax relief. Once claimed, recurring reliefs such as those for trade union subscriptions are allowed on an ongoing basis and reappear each year in the taxpayer's certificate of tax credits.

The ITI also implied that when claims are made refunds are not made in a timely manner. This is not the case and I am assured by Revenue that repayment claims are prioritised and Revenue's published customer service standards for the processing of refund claims are generally met, save in peak periods.

The ITI also urged Revenue to educate PAYE taxpayers about the tax system and their entitlements. I assure the Deputy that Revenue has taken this task seriously for many years. Each year, every PAYE taxpayer receives a tax credit certificate showing the credits he or she has been given. He or she also receives a short leaflet explaining all the standard credits available. It is relatively simple to check the credits given against those available and taxpayers are encouraged to do this. Credit certificates for 2007 are being issued and a press and radio advertising campaign is being built around this process.

From time to time, Revenue has public information campaigns. In 2006, its chairman wrote to every person on the PAYE tax record informing them about the new Revenue on-line service, ROS, and other self-service options for employees. In August and September 2006, Revenue launched an intensive nationwide campaign to encourage take-up of health type reliefs, the waste charge credit and rent relief. The response was encouraging and I am advised that Revenue will run a similar campaign this year.

A wide range of publicity booklets can be found in Revenue public offices and on its website. Leaflets and claim forms for medical and dental expenses are available in clinics, surgeries and pharmacies. More limited information is available on Teletext and, increasingly, Revenue information for the public is being made available in a wide variety of other languages, including Polish, Lithuanian and two Chinese dialects.

All these factors demonstrate that Revenue has long been proactive in its approach to dealing with claims for tax credits and reliefs. I am satisfied that taxpayers are being offered every assistance and advice in relation to claiming reliefs and credits and, together with the variety of service channels Revenue has put in place, they are being given the opportunity to do this in the most efficient and customer friendly way possible.

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