Call to simplify tax rebate system

Experts today called on the Government to reform the tax relief system in order to make it easier for workers to get back the…

Experts today called on the Government to reform the tax relief system in order to make it easier for workers to get back the millions of euro they are owed.

Proposing a one claim, one form scheme, the Irish Taxation Institute (ITI) said it was time to end the confusing, complex and cumbersome method currently in place to secure rebates.

One million people - half of all PAYE workers - do not understand the tax system, the ITI said.

The language of tax is confusing and intimidating. Tax forms are cumbersome and complex
Irish Taxation Institute ceo Mark Redmond

And figures from the Revenue revealed up to €100 million is lying in Government coffers waiting to be claimed back.

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In an address to the Joint Oireachtas Committee on Finance, ITI chief executive Mark Redmond said the tax system was confusing and intimidating and not customer orientated.

"It is clear from what we've seen that our tax administration system is not customer focussed. As it stands, the language of tax is confusing and intimidating. Equally, tax forms are cumbersome and complex," he said.

"This need not be the case and were it to continue to be so, we would be failing PAYE taxpayers."

  • Calling for a more customer focussed tax system, Mr Redmond outlined four key tests which the reformed system must pass.
  • Quantify - Firstly establish how much is forgone in tax reliefs every year.
  • Simplify - Replace the plethora of tax forms to a one claim, one form approach to securing reliefs.
  • Swift - If you make a claim, refunds should be paid in a timely manner.
  • Educate - Teach PAYE taxpayers about the tax system and entitlements.

Mr Redmond said the Tax Advocate, independent of Revenue, should be established and that a new PAYE Customer Satisfaction Unit should be established within the Revenue Commissioner's Office.

The Customer Satisfaction Unit would be charged with a major simplification of the tax relief process after consulting with taxpayers.