Fine Gael and Labour are to seek changes in proposed legislation this week to provide for an independent watchdog resulting in more tax refunds for the public.
The suggestions, which are included in proposed amendments to the Finance Bill, include streamlined systems for tax refunds for medical and other expenses.
Yesterday Fine Gael said that up to 60 per cent of tax refunds remain unclaimed. Under the current entitlements, PAYE earners are allowed to claim back tax against certain medical and dental expenses, along with bin charges and rent.
Fine Gael finance spokesman Richard Bruton said claims had increased to €301 million in 2005 from €185 million in 2001, which he said was due to a Fine Gael campaign on the issue.
However, he said a large proportion of entitlements remained unclaimed in medical, rent and bin charge allowances. "In these areas alone, over €250 million more would be repayable if all people made their legitimate claims. Other big overpayments occur when people move job or retire. Many fail to claim home carer's relief. Older people are often due Dirt tax refunds that are never made."
He said the party was proposing amendments to the Finance Bill to make it easier and more beneficial to claim such tax reliefs. These include extending reliefs to cover routine dental and optical care, a system of simple tax claim forms that could be stamped by suppliers, and extending the claim time for such reliefs from four to six years.
The Labour Party is also proposing a taxpayers' advocate, who would be linked to the Ombudsman's office. The role of the advocate would be "to ensure that taxpayers get a fair deal from the Revenue Commissioners and that, in particular, they get tax back in respect of expenditure such as medical bills and refuse charges," Labour finance spokeswoman Joan Burton said.
Under Labour's proposals, the commission would look at the new proposals for tax breaks, such as the ongoing proposals for tax breaks for private hospitals, psychiatric institutions and other care facilities. "I am extremely concerned at the failure of the Minister (for Finance) to publish any cost benefit analysis of these new property-based tax breaks or an impact statement of how they will affect the health services," Ms Burton said.
"Every €100 million of private hospital investment will cost the taxpayer €42 million. It is not good enough that the cosy arrangements between the Fianna Fáil/PD Government and builders and developers should continue without any analysis as to their cost and benefit."