Damien English (Meath, Fine Gael)
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Question 112: To ask the Minister for Finance if he has satisfied himself with the provisions for dealing with overpayment of taxation; and if he will make a statement on the matter. [13302/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that a wide range of initiatives has already been taken to inform PAYE taxpayers of their entitlements to tax credits-reliefs and so avoid overpayments of tax.

The Revenue Commissioners inform me that the vast majority of PAYE workers receive their full entitlements every year. At the beginning of each year a tax credit certificate is issued to every PAYE taxpayer and this reflects the most up-to-date information that Revenue has regarding an individual's entitlements. The Revenue Commissioner completed the issue of 2.24 million such certificates for 2005 in mid-February. Each certificate was accompanied by a simple but comprehensive leaflet giving full details of the credits-reliefs to which a taxpayer may be entitled including: main personal tax credits available for the year in question with comparative figures for the preceding year; tax rates and tax bands for the year in question; exemption limits for single, widowed and married persons; and how to claim an adjustment to the tax credit certificate.

The Revenue Commissioners use media advertising on a regular and systematic basis to acquaint taxpayers about their entitlements and to encourage them to claim these. In relation to the PAYE community in particular there is extensive advertising of the budget provisions each year including a Revenue Commissioners free-phone service which operates for two days immediately following the budget. When the tax credit certificates are being issued during January and February each year a newspaper and radio campaign is run to alert people to this.

In February 2005, the Revenue Commissioners launched a new self service option for PAYE taxpayers. This service allows PAYE employees to claim, using the Internet, text messaging or the lo-call 1890 phone number, age credits for those over 65 years, service charges and trade union subscriptions. It also allows them to request a Form 12, return of income, MED 1, medical expenses claim, P50, unemployment claim, and Rent 1, rent relief. These facilities were widely advertised in the media and were included in the information leaflet issued with the tax credit certificates for 2005.

The Revenue Commissioners also published a wide range of claim forms, leaflets and guides on all PAYE credits and reliefs including: IT1 — tax credits, reliefs and rates for 2004 and 2005; IT2 — taxation of married persons; IT3 — what to do about tax when you separate; IT6 — health-medical expenses relief; MED 1 — health expenses claim form; IT8 — tax exemption and marginal relief; IT9 — one parent family tax credit; IT11 — employee's guide to PAYE; IT18 — incapacitated child allowance; IT27 — tax relief for service charges; IT31 — tax relief for tuition fees; IT35 — blind persons allowances and reliefs; IT45 — tax credits and reliefs for over 65s; IT46 — dependent relative tax credit; IT47 — employed person taking care of incapacitated individual.

All the above forms and information leaflets can be downloaded and printed from the Revenue Commissioners website or ordered on-line. There is also a 24 hour telephone number available, 1890 30 67 06, for requesting forms or leaflets.

The Revenue Commissioners are undertaking a very comprehensive review of the PAYE system and in the latter part of this year will begin the roll-out of a redesigned system which will allow taxpayers to access their Revenue Commissioners records over the Internet to ascertain allowances-credits given and details of pay and tax; amend their tax credit details over the Internet, that is, claim an allowance-credit not on record or to change the amount involved for an existing relief, and request an on-line review of their liability or a balancing statement, based on the details available on the Revenue Commissioners record, including where amended in relation to entitlements.

This will give taxpayers a greater control over their tax affairs and let them check whether they have claimed their full entitlements. The Revenue Commissioners also engage from time to time in targeted media campaigns on particular issues. Two recent examples of such campaigns relate to the four year time limit for claiming repayments, which encouraged taxpayers to ensure they made claims within the required timeframe, and informing taxpayers about the reliefs available to those supporting relatives in nursing homes.

The Revenue Commissioners already liaise with other State bodies and private institutions to facilitate the granting of credits/reliefs to PAYE taxpayers, for example, liaison in regard to: the tax relief at source, TRS, system which was introduced a number of years ago and which ensures that all those entitled to mortgage and medical insurance reliefs get these reliefs at source and do not have to make a claim to the Revenue Commissioners; service charges, where payment information is received from local authorities, which is used to give a credit to the individual PAYE taxpayer concerned.

In addition, there is an ongoing exchange of information between the Revenue Commissioners and the Department of Social and Family Affairs in regard to certain taxable payments made by that Department to PAYE employees. This interaction will be enhanced considerably through the more timely exchange of information when the redesigned PAYE system already referred to is rolled out in the latter part of this year.

I am, accordingly, satisfied that the Revenue Commissioners are already very proactive in the manner in which they ensure that PAYE taxpayers are made aware of their entitlements and facilitated in claiming these. The Revenue Commissioners will keep the issue under constant review and take whatever steps are necessary in regard to public information campaigns so as to continue to inform taxpayers of their entitlements and to simplify as far as possible the arrangements for making these claims. I emphasise, however, that the primary responsibility for ensuring that the Revenue Commissioners have the most up to date information on a taxpayer's affairs lies with the taxpayer.