Brian Cowen (Laois-Offaly, Fianna Fail)

The Senator is proposing that where moneys are paid to State agencies that would subsequently qualify for tax relief, the Minister would make regulations that would require such State bodies to make returns of all such payments. The purpose of the return appears to be to facilitate the Revenue Commissioners in granting the appropriate relief to the taxpayer.

Regarding an amendment on the same point in the Dáil, the Senator's colleague, Deputy Bruton, referred to the possibility of granting relief in some instances by way of tax relief at source under the TRS system. The return proposed by the Senator would considerably increase and complicate the burden of administration on the PAYE system. It would also involve State agencies in determining whether clients qualify for tax relief, which is a function proper for the Revenue to determine. To involve State agencies in this area would have the likely effect of significant numbers of claimants being given relief in error which would subsequently have to be withdrawn. Checking the validity of claims would also increase the administrative burden on Revenue.

I would point out that Revenue is currently developing a self-service facility for taxpayers, particularly those dealt with under the PAYE scheme, which will greatly enhance their ability to make claims for relief by telephone or on-line. This will ensure that any necessary amendments can be made as soon as the individual taxpayer has identified his or her entitlement to it.

On the issue of trying to make sure that people make claims to which they are legitimately entitled, a considerable amount of work is being undertaken by Revenue to bring these matters to the attention of taxpayers. Ultimately, the responsibility for the tax return remains with the individual citizen. While every effort must be made to increase awareness, it is not possible to transfer the responsibility for submitting the tax return from the individual to the Revenue or some other agency. It is a matter for the individual to deal with but we must try to ensure that they are aware, to the greatest extent possible, of whatever reliefs to which they are entitled. The on-line system being introduced to the PAYE system will greatly facilitate that.

Revenue has greatly improved its mechanisms and customer support services in a range of areas, on which I commend it. I also noted recently that the Institute of Taxation in Ireland is also undertaking a major public awareness campaign as part of this pro bono effort to ensure citizens are aware of the six or seven most common reliefs sought and that they would have an understanding and awareness of their entitlements. This is being done through websites and documents which are being made available not only to practitioners but to the wider public through various communicative means. I welcome this initiative to promote the public good.

Various ideas have been put forward about this but the basic principles remain, namely, the responsibility of the individual for the tax return; and the availability of whatever means of communication technology are available, both by Revenue and others, such as the Institute of Taxation in Ireland and others who are prepared to try to ensure that to the greatest extent possible, people are not only aware of the general reliefs to which they should claim in all cases but also that they understand how to go proceed in the absence of them seeking the advice of accountants.