John Paul Phelan (Fine Gael)

I move recommendation No. 3:

In page 9, before section 1, to insert the following new section:

"1.—The Principal Act is amended by the insertion of the following new section 15A:

'15A.—(1) In any year of assessment where monies are paid to any state or other body in respect of which the individual making such payments would be entitled to a tax credit or an allowance for income tax the Minister for Finance may direct that such state or other body shall make a return of such payments made by such persons in such format and shall be determined by regulations as shall be made by the Minister for Finance to enable a tax credit or deduction to be made or allowed.

(2) In respect of any such information provided to the Offices of the Revenue Commissioners no liability shall attach to the Office of the Revenue Commissioners or otherwise for failing to provide such tax credit or allowance to the person who made the payment.'."

This recommendation is designed to open up areas where a form of refund at source of tax allowable expenditure could be extended. A number of tax reliefs are refunded from source, for example, mortgage interest relief. Some of the reliefs are not taken up to any great extent, the most significant being the relief available on bin charges. More than 1 million people pay bin charges nationally, yet the take up on the relief is less than 200,000. Approximately three quarters of those who pay bin charges do not avail of the relief. There may be reasons for that but certainly there is a significant shortfall in numbers. The intention of this recommendation is that the refund at source practice be extended to reliefs other than those to which it already applies. Perhaps the Minister has a view on whether this can be adopted at some time in the future and if the Government intends to extend this initiative to other areas. I look forward to his response.