Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I am advised by Revenue that, to date, it has refunded €554 million to PAYE taxpayers in respect of 2021 and €193 million in respect of 2022. In 2022, Revenue wrote to over 400,000 individuals who, based on the information available to Revenue, may have overpaid or underpaid tax in some or all of the years 2019 to 2021, inclusive. These letters provide a preliminary tax position, advising the recipients to submit a tax return to claim any additional tax credits or reliefs that they may be due and-or to declare any additional income they may have received.

As of 23 January this year, more than 1.1 million PAYE employees have submitted tax returns in respect of 2021 and more than 370,000 PAYE employees have submitted their returns in respect of 2022. Any overpayments due to PAYE taxpayers can only be quantified when they submit their tax returns at the end of the year and claim any additional credits or reliefs that may be due and declare any additional income received.

At the end of every year, Revenue makes a preliminary end-of-year statement available to all employees. The statement sets out a provisional tax position, based on information available on Revenue records. It will show whether an employee has paid the correct income tax and universal social charge for the year. If a taxpayer wishes to claim additional credits, reliefs, or expenses, such as health expenses, or declare other incomes, they must complete an income tax return for the year. Revenue will then generate a statement of liability confirming their final tax position.

Revenue encourages taxpayers to submit their returns to ensure that they are paying the correct tax and to receive any refunds that they may be due.

For the remaining PAYE taxpayer units, where jointly assessed spouses or civil partners are counted as one unit, with a preliminary end-of-year statement for 2022 and who are yet to file an income tax return the following is the case: about 1.4 million, or 62%, are potentially balanced; about 563,300, or 25%, have potentially overpaid tax of up to €400 million; and 287,000, or 13%, have potentially underpaid tax of up to €118 million.

The moral of the story is that everyone should make a return. Many people are entitled to refunds but they will have to go online and engage with the system, where the refunds are issued quickly, in my experience.

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