Kieran O'Donnell (Limerick East, Fine Gael)
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Question 20: To ask the Tánaiste and Minister for Finance if the Revenue Commissioners have an estimate of the amount of unclaimed taxes; and if he has satisfied himself that the Revenue Commissioners' statement of strategy sets no specific targets in this area. [8064/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have made the point a number of times that Revenue can only allow tax credits and reliefs on the basis of the information known to it. There is no accurate method to estimate the amount of unclaimed taxes. The Revenue Commissioners have been making every effort to ensure that all taxpayers are fully aware of their entitlements. The self-employed must fill in an annual return form on which there are prompts to claim all available reliefs. In recent years, Revenue has taken several initiatives to inform PAYE taxpayers of their entitlements and to encourage them to claim.

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

Revenue's new statement of strategy, which I recently approved, sets out the directions and priorities for the next three years. One of its strategies for the achievement of this goal is to help customers pay the right amount and to get their entitlements. The inclusion of this additional goal underlines Revenue's commitment and determination to help its customers, both individuals and businesses, to receive their due entitlements and to pay only the right amount of tax.

Kieran O'Donnell (Limerick East, Fine Gael)
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Once again the Tánaiste has not answered my question. I asked for an estimate of the amount of unclaimed taxes. When the Tánaiste's Department rang me in this regard, I told it which specifics I was looking for.

The point I am making is straightforward. In 2007, there were refunds in the order of €530 million. I have with me the strategy to help customers in paying the correct amount and getting their entitlements, but I cannot see a specific strategy to enable people to claim their correct credit entitlements or to collect the correct refunds. Is the Tánaiste responsible for the Department of Finance and the Revenue Commissioners? Will he instruct the latter to put the same effort into informing people of their entitlements so that they can claim their credits? Many credits — medical expenses, college fees, bin charges, trade union memberships, medical insurance at source, the old age tax credit, rent relief, rent-a-room relief, the dependant relative allowance and DIRT exemptions in the case of over 65 year olds — can be claimed if people are aware of them. However, many people are unaware of them.

Now that the tax credit certificates have issued, will the Tánaiste instruct the Revenue Commissioners to engage in a high-profile media campaign, by way of television, the Tánaiste himself or otherwise, to inform people of the situation and allow them to claim their correct refunds from the preceding four years and their correct credits for this year?

Brian Cowen (Laois-Offaly, Fianna Fail)
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Revenue is proactive in this matter. On Committee Stage of the Finance Bill, we outlined the extent to which the ongoing campaign has been improved and enhanced. In the House, credit was given to Revenue for its work in this regard. It may even have been mentioned in a constructive manner on Committee Stage.

Kieran O'Donnell (Limerick East, Fine Gael)
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This is a simple measure.

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is not.

Kieran O'Donnell (Limerick East, Fine Gael)
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Revenue could conduct a high-profile——

Brendan Howlin (Wexford, Labour)
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I will call the Deputy, but he should allow the Tánaiste to give a reply until then.

Brian Cowen (Laois-Offaly, Fianna Fail)
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Revenue has undertaken several major initiatives, including an intensive high-profile campaign during August, September and October of 2006 involving advertisements on radio and in bus shelters, the DART and Luas encouraging taxpayers to claim their tax credits and reliefs. During the summer and early autumn, a leaflet giving details of how to access and use Revenue's self-service Internet facility for PAYE taxpayers was sent to each taxpayer. The facility allows each PAYE customer to claim the most commonly used tax credits, apply for a tax refund, claim medical expenses, request a tax review, reallocate tax credits between spouses and update personal information. It is a totally secure on-line service and each taxpayer has his or her own unique PIN to log in. Revenue has just completed the posting of this year's tax credit certificates to 2.2 million PAYE taxpayers. Accompanying each certificate was a creatively designed leaflet that focused on informing people of their entitlements to tax credits and reliefs and gave them details of the various contact channels to make claims. A further publicity campaign is planned.

There is a great deal of proactivity in this matter, which has been raised a number of times in the House. When I took it up with Revenue, it responded. The take-up of some reliefs has increased. It remains the ultimate responsibility of the taxpayer to claim reliefs, but we can try to ensure they are aware of the reliefs.

Kieran O'Donnell (Limerick East, Fine Gael)
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It is a question of the level of refunds involved. We have devised estimates based on spending patterns identified by the Central Statistics Office, CSO, and the figure relating to unclaimed medical expenses in 2007 was in the region of €500 million, €250 million was unclaimed in rent payments and €300 million in bin charges. Many people, including the elderly, may be uncomfortable with the form involved in making claims. Many credits do not require a return to be filed and can easily be brought up on the system but people may not know how to do this.

Revenue runs very high profile campaigns on television every year relating to P35 forms and Form 11, which relates to income tax returns. There is not a similar campaign when tax credit certificates issue and I ask the Tánaiste and Minister for Finance, Deputy Brian Cowen, to instruct the Revenue Commissioners to run such a campaign through television and radio media now as tax certificates are issuing.

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I said in my earlier reply, a further publicity campaign is planned.

Kieran O'Donnell (Limerick East, Fine Gael)
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When?

Brian Cowen (Laois-Offaly, Fianna Fail)
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Now that they are being issued further publicity is planned.

Kieran O'Donnell (Limerick East, Fine Gael)
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Now is the time it should happen as the tax certificates are issuing.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy is free to ask questions and it is fine if he does not like the answers but progress is being made, activities are going on and people are not unmindful of the efforts that must be made in this area.

Kieran O'Donnell (Limerick East, Fine Gael)
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People are entitled to refunds.

Brian Cowen (Laois-Offaly, Fianna Fail)
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People claim their entitlements. There are also arrangements on tax relief at source where mortgage relief and medical insurance relief are provided at source through the taxpayer obtaining a reduction in repayments or premiums equivalent to the tax relief. Recurring reliefs, such as those for trade union subscriptions or bin charges, once claimed are allowed on an ongoing basis and reappear each year in the taxpayer's certificate of tax credits.

Kieran O'Donnell (Limerick East, Fine Gael)
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Why do we have €530 million of refunds?

Brian Cowen (Laois-Offaly, Fianna Fail)
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That is the Deputy's estimate.

Kieran O'Donnell (Limerick East, Fine Gael)
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There is €530 million of refunds and that is a matter of record with the Revenue.

Brian Cowen (Laois-Offaly, Fianna Fail)
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Revenue is engaged in an ongoing programme to secure information from third parties that will enable it to grant certain credits and reliefs automatically and, in certain situations, make refunds. The computer system now contains date of birth details and, as a result, age-related credits are now granted automatically. Much is being done regarding area credits.