Brendan Howlin (Wexford, Labour)
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Question 365: To ask the Minister for Finance his views on whether it is equitable that overpayments of PAYE tax may only be recovered from the Revenue Commissioners within a four-year period whereas taxpayers remain liable in perpetuity for underpayments of tax; and if he will make a statement on the matter. [5535/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I will outline the current position on time limits for claiming repayments of tax. In the Finance Bill 2003, the then Minister for Finance examined the question of the entitlement of taxpayers to repayments of tax and interest with a view to introducing, in so far as practicable, a uniform scheme which was fair and reasonable for taxpayers and which took into account the position of the Exchequer. On foot of that review, a new provision was introduced in section 17 of the Finance Act 2003, which gives taxpayers a general right to a repayment of tax overpaid subject to a four-year claim limitation period. This became effective for all claims received on or after 1 January 2005. It is important to note that a corollary to the restriction to four years on the taxpayer's right to a repayment is a restriction on the Revenue Commissioners going back more than four years to assess taxpayers, except if fraud or neglect is involved and no limit applies. It is not, therefore, the position that taxpayers remain liable in perpetuity for underpayments of tax.