Brian Cowen (Laois-Offaly, Fianna Fail)

As stated, this is an issue that was discussed on Committee Stage and during the debates on previous Finance Bills. Some recognition, in fairness, has been given to Revenue's efforts to improve the range of services it provides in order that taxpayers are made aware of their entitlements and assisted in every way possible in obtaining those entitlements.

Looking at the list of initiatives to inform taxpayers of their entitlements and grant reliefs automatically, in the autumn of 2007 there was a major advertising campaign undertaken in the national daily newspapers, on national and local radio, in DART and Luas stations, and on bus shelters, etc. Last year Revenue automatically granted age credits for those reaching the age of 65 years and automatically granted increased rent credits for those aged 55 and over. It opened DIRT-free accounts for those over 65 years or permanently incapacitated. The number of DIRT-free accounts was 47,218. The DIRT repaid last year to 920 claimants came to €2.2 million. Over €9 million was automatically refunded to 50,000 taxpayers based on details received by Revenue in respect of pharmacy costs.

As has been said, Revenue is advertising details on television and radio, whereby taxpayers can apply for tax credits and refunds using its on-line service. Local tax offices are also available to assist. In fact, many may go to the local office in the first instance. Revenue intends to be in the position where it can make automatic refunds in respect of tuition fees paid to third level colleges and universities. The feasibility of extending this approach to nursing home fees and medical and dental practitioner expenses will also be examined during the course of the year. Revenue has made available a wide range of publications and guides on its website, of which a major redesign will be undertaken this year to improve the quality and timeliness of the information available.

In helping taxpayers to pay the right amount and to avail of their entitlements, Revenue, over the course of its new strategy statement, plans to target better communication and information dissemination at individual needs. These initiatives during the course of the 2008-10 strategy statement period will include a major redesign of Revenue's website to improve the quality and timeliness of information and to present information and services on a more customised basis; running information campaigns on tax and customs systems, both locally and nationally, and to include programmes directed at non-Irish nationals; improving the quality of information based on a plain English standard available to all customers, validated by customer surveys and structured feedback from representative groups; easier to use PAYE self-service channels, leading to greater take-up; and tax credits and other reliefs increasingly given on an automated basis or prompted on foot of third party data. Much has been done in this area on the initiative of the Revenue Commissioners and prompted by the public debate ongoing in the House on successive Finance Bills with regard to making the maximum effort to ensure people get their entitlements.

The amendment is similar to one we had on Committee Stage regarding the need, as perceived by the Deputy, to establish a tax advocate's office. The statutory remit of the ombudsman already incorporates both of the roles proposed for a taxpayer's advocate, namely, acting for taxpayers and investigating actions that are contrary to fair or sound administration. Since the inception of the Office of Ombudsman, significant numbers of taxpayers have exercised their right to make complaints to that office. The ombudsman has carried out several special investigations on her own initiative under the Ombudsman Act 1980. When calls were made previously for the establishment of a taxpayers' advocate, the then ombudsman drew attention to the duplication of role and responsibilities that such a development would involve.

Apart from the statutory role and responsibility of the ombudsman, other avenues are open for taxpayers to make their complaints and to seek satisfaction for perceived unfair treatment. They can lodge a customer service complaint about the standard of service received in their personal contact with the Revenue Commissioners, by telephone, correspondence, fax, e-mail or in person, to a Revenue public office. They can request a review by Revenue of any aspect of the way in which their tax affairs have been handled. Such reviews are undertaken by a senior Revenue official who is not involved in the original decision, or, at the taxpayer's request, jointly by an external reviewer and a senior official. Taxpayers dissatisfied with specific treatment by Revenue can appeal under statutory provisions that grant access to the appeal commissioners, who are completely independent of the Revenue Commissioners.

In the Finance Act last year, I introduced a new scheme to allow the operation of DIRT exempt savings accounts subject to two conditions, that the account holder be 65 years of age or over or be permanently incapacitated and total income not exceed the relevant exemption threshold, €19,000 for an individual or €38,000 for a married couple. In 2007, Revenue arranged for an information leaflet to be issued to social welfare customers in receipt of State and other pensions. Some 100,000 leaflets were issued in that way. Revenue also continued to publicise the facility offered by the accounts through appropriate channels, including contact with representative bodies, other Departments and agencies and relevant advertising.

The Revenue Commissioners are satisfied that their ongoing efforts to inform taxpayers of their entitlements are having the desired effect. This is demonstrated by the substantial increase in the number of PAYE taxpayers seeking reviews of their tax liability in the context of claiming additional tax credits and reliefs. The number of reviews processed in 2006 was 1.14 million, as against 552,000 in 2005. The figure for reviews in 2007 is comparable to the 2006 figure and will be published in the Revenue annual report due in April.

Revenue staff in front offices dealing with the public and those manning customer help lines are trained to give full assistance to all customers. Where necessary, they will explain all areas of the tax code and the entitlements of individual taxpayers. There is also a wide range of information leaflets available, both in print and on line.

The fact that few people are enthusiastic about paying tax is all the more reason for effective channels of complaint and appeal by taxpayers against poor service or unfairness. Given the comprehensive and accessible system already in place for complaints or appeals by any taxpayer who feels unfairly treated by the tax system, I do not believe there is a case for putting in place the additional layer of a tax advocate's office.

With regard to other issues raised in the debate we have had on this section, there are issues of concern, for example, the weakness in CGT for the first two months of this year. There have also been adverse developments since the Budget Statement in December and in the international situation. We will monitor that situation and commit ourselves to watching expenditure levels closely during this 12 months. We will consider the situation after the first quarter and make further comment at that stage.

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