David Stanton (Cork East, Fine Gael)
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Question 62: To ask the Minister for Finance his views on reducing the number of years from six years as the period of time required by the Revenue Commissioners for the holding of receipts by applicants claiming health relief for health expenses; and if he will make a statement on the matter. [25189/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the requirement to submit receipts with claims for tax relief for health expenses was waived in 1998. This was one of a number of customer service initiatives taken by Revenue designed to streamline the administration of claims, reduce processing times and therefore deliver an improvement in the quality of service to taxpayers. Claims for health expenses are accepted and processed on the basis of the figures shown on the relevant claim form submitted by the taxpayer. Some claims may subsequently be selected for a "credibility" check and where it seems from this 'credibility' check that the claim is not in accordance with the taxpayer's circumstances, the taxpayer will be consulted to clarify the claim. In these circumstances, certain documentation to support the taxpayer's claim may be sought, and it is for this reason that there is a requirement that certain records be retained.

The relevant legislation — Section 886A of the Taxes Consolidation Act 1997 — requires certain records to be retained for a period of six years. I am satisfied that this is a reasonable period of time and is necessary for audit and examination/verification purposes and furthermore, does not impose an undue burden on taxpayers. I am advised by the Revenue Commissioners that no particular difficulties have been encountered with this requirement. However, the matter will be kept under constant review with the aim of ensuring that no unnecessary burden is imposed on compliant taxpayers.