Jimmy Deenihan (Kerry North, Fine Gael)
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Question 124: To ask the Tánaiste and Minister for Finance his views on extending the period for the reclaim of VAT from four years to six years as recommended by the Joint Committee on Finance and the Public Service, in the Finance Bill 2008; and if he will make a statement on the matter. [28424/07]

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, 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.

Brian Cowen (Laois-Offaly, Fianna Fail)
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First-time buyers are exempt from stamp duty when purchasing either new or second-hand residential properties. However, the purchase of land, which is not connected with a contract to build a house, attracts stamp duty at normal non-residential rates, regardless of the status of the purchaser. This is a long standing provision and recognises the fact that land is bought and sold for a variety of reasons.