Written answers
Thursday, 25 October 2007
Department of Finance
Tax Collection
5:00 pm
Richard Bruton (Dublin North Central, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Finance if he has reviewed the recommendation of the Joint Committee on Finance and the Public Service to allow the time limit for claiming refunds on overpaid tax to be extended to at least six years; and if he will make a statement on the matter. [25808/07]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I have noted the recommendation of the Joint Committee on Finance and the Public Service regarding the time limit for claiming refunds of overpaid tax. My predecessor as Minister for Finance examined the whole question of taxpayers' entitlement to repayment 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 also took into account the position of the Exchequer. On foot of that review, a new provision was introduced in Finance Act, 2003 (Section 17) which for the first time gave taxpayers a general right to repayment of tax overpaid subject to a 4 year claim limitation period. This became effective for all claims received on or after 01 January 2005. At the same time the right of the Revenue Commissioners to raise assessments and make enquiries was also reduced to a 4 year period, apart from cases where fraud or neglect is suspected. The scheme was devised after careful and detailed consideration. It was designed to achieve the necessary balance between establishing a fair and uniform system for taxpayers, including parity of treatment between PAYE and self-employed taxpayers, while, at the same time, providing the necessary protection for the Exchequer from exposure to claims going back many years.
Overall, I am satisfied that the current provision is both fair and reasonable and I have no plans to amend the legislation in this area.
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