Jim O'Keeffe (Cork South West, Fine Gael)
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Question 177: To ask the Minister for Finance the reason a large number of certificates of tax credits which are normally issued in early January have not been issued causing in many instances distress to taxpayers who are as a consequence put on emergency tax deductions; the number outstanding; the reason for the delays; when these will be fully cleared up; and if he will make a statement on the matter. [12567/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the issue of approximately 2.2 million individual tax credit certificates to PAYE customers, reflecting the budget changes, was completed at the end of February.

Since the changeover to a calendar tax year in 2002, it has not been possible, in the context of a December budget, to issue all tax credit certificates in early January. The timescale for completion of the bulk issue this year was of the order of two to three weeks longer than usual. A dimension for 2006 was the new PAYE computer system put in place by Revenue in October last that forms the bedrock for a range of improved services for customers later this year. The bulk issue of tax credit certificates for 2006 was the first in the new system and Revenue advise me that it took some additional time with the bulk issue as part of the process of bedding in the new system. The issue of the tax credits notices to employers was prioritised by Revenue so as to ensure payroll benefits arising from the budget changes were put into effect as quickly as possible.

Revenue also advises me that the tax credit entitlements for a minority of customers were affected in the major changeover process. Revenue assures me that it had a very active process in place for identifying any such customers and, where appropriate, automatically issued amended notices to employers to enable them to immediately adjust the payroll deductions. Amended tax credit certificates for individuals subsequently issued as part of this process and any entitlements were backdated to the start of the year.