Written answers

Wednesday, 21 November 2007

9:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 144: To ask the Tánaiste and Minister for Finance the value of unclaimed tax refunds for each of the years 2004, 2005 and 2006; and if he will make a statement on the matter. [30150/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that they are not in a position to provide an estimate of the amount of unclaimed tax refunds for the years in question. This is because the Revenue Commissioners can only allow reliefs and credits on the basis of the information that is known to them. Consequently, there is no way to accurately assess underclaimed entitlements where changes in individual circumstances have not been notified by the taxpayers concerned. The Revenue Commissioners are confident that the majority of taxpayers claim the reliefs to which they are entitled. For instance so far in 2007 almost 750,000 repayment claims, dealing with the years 2003 to 2007 inclusive, have been processed. The Revenue Commissioners are constantly reminding taxpayers of their entitlements. Every year, for example, every PAYE taxpayer gets a notice with his or her determination of tax credits outlining the full list of reliefs available. They also get a short leaflet listing the most common credits that are available. Over the last two years, the Revenue Commissioners have undertaken a number of public information campaigns to make people aware of their entitlements and to encourage claims. The response to these campaigns has been encouraging.

In relation to the granting of credits and reliefs, the policy of the Revenue Commissioners is that, once claimed, the majority of them are generally carried forward automatically from year to year by the Revenue computer system, without any need for the taxpayer to lodge a further claim. In addition, many more significant reliefs are granted through the Tax Relief At Source arrangement. For example, mortgage interest relief and medical insurance relief are provided at source through the taxpayer obtaining a reduction in repayments or premiums equivalent to the tax reliefs. Recurring reliefs, like those for trade union subscriptions or bin charges, once claimed, are allowed on an ongoing basis and reappear each year in the taxpayer's certificate of tax credits. Additionally this year the Revenue Commissioners automatically grant age related credits and they will, in 2008, automatically generate refunds of tax in respect of unreimbursed expenditure incurred under the drugs payment scheme. The Revenue Commissioners are being proactive in offering taxpayers every assistance and advice in relation to claiming reliefs and credits and, together with the variety of service channels which the Revenue Commissioners have put in place, they are being given the opportunity to do this in the most efficient and customer friendly way possible.

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