Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 204: To ask the Minister for Finance the number of requests for balancing statements made by PAYE taxpayers since 1 January 2005; the number of such requests that have resulted in a repayment of tax to taxpayers since then; the average amount repaid; and if he will make a statement on the matter. [5896/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the following table gives the statistics requested for the period from 1 January 2005 to 10 February 2006.

The PAYE tax collection system was designed to collect an employee's tax liability for a year on a cumulative basis over the year. It can only collect the correct amount of tax where the employee has claimed and been granted in the annual notice of tax credits and standard rate cut-off point all the reliefs to which he or she is entitled. Revenue can only allow tax credits-reliefs on the basis of the information that is known to it. If the information on the tax credit certificate is incorrect or if there is a change in circumstances in the course of the tax year, which is not notified to Revenue, then the system will not operate as intended and the tax deducted will be incorrect.

The vast majority of taxpayers are conscious of the credits and reliefs they are entitled to and, where claims are necessary, take the required action. Revenue makes every effort possible to inform taxpayers of their entitlements and where additional tax credits are claimed the necessary adjustments in the taxpayer's affairs are speedily made.

It is, of course, the position that some reliefs need not be claimed or need be claimed only once. Claims that are not required are those where the relief is given at source, for example, pension contributions, permanent health insurance, medical insurance and mortgage interest. Reliefs that need only be claimed once are those that will remain constant in the taxpayer's profile over the year, for example, basic tax credits, PAYE credit, trade union subscription and so forth. In this instance, once claimed the reliefs are automatically carried forward from year to year. The only reliefs that need to be claimed on an ongoing basis are those that are expenditure-related such as medical expenses relief. It is such claims that give rise to the greater part of repayments of tax and this is because the relief cannot be quantified until after the end of the year.