Derek McDowell (Labour)

It is an interesting amendment because TRS has been one of the serious improvements in the way the tax system is administered in recent years. It would be useful if it could be extended to other areas where people frequently do not make claims.

As I understand it — the Minister can correct me if I am wrong — what currently happens is that if one takes out a mortgage with a financial institution, one is required to complete a TRS form which is then submitted to the Revenue. I assume it in turn contacts the financial institution involved and tells it that it should deduct at source and pay the tax to Revenue. I assume that is the way it works and, if so, there is no reason in principle it should not work with trade union subs, for example, or perhaps third level fees where people are paying a charge up-front which could be reduced by the amount of tax they would be likely to get back in any case.

I can envisage administrative problems but it strikes me that it is a serious improvement of real benefit to taxpayers when they do not have to pay over the full amount. Effectively, they pay it over tax free. Is any work going on in Revenue or within the Department to determine whether the system could be extended because it would be useful if that could be done?