Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the applicable provision giving a right to repayment of tax is section 865 of the Taxes Consolidation Act (TCA) 1997, where a person has paid an amount of tax which is not due. However, section 865(4) of the TCA provides that that right is subject to the making of a claim within a statutory limit of four years after the end of the chargeable period to which the claim relates. That statutory limit is binding on Revenue as well as on taxpayers.

Section 865 was introduced in 2003 and provides a statutory general right to repayment of tax as well as payment of interest, subject to the four year time limit.  It provides that no repayment may be made based on claims submitted more than four years after the end of the period to which they relate. Prior to its introduction there was no statutory right to repayment.  

At the same time as section 865 was introduced, Revenue’s general right to raise assessments or make enquiries as respects taxpayer returns was also reduced to four years, except in certain circumstances where Revenue's right to enquire or raise assessments is not time limited, for example where fraud or neglect is suspected or in the context of the application of general anti-avoidance rules. Previously, the general time limit on the raising of assessments by Revenue had been ten years.

The Minister at the time indicated that, in introducing the new arrangements, he was satisfied that they achieved the necessary balance between establishing a fair and uniform system for taxpayers while providing necessary protection for the Exchequer.

While I am satisfied that that continues to be the position I will ask my officials to examine the issue.