Around half of the country's taxpayers are unaware of what tax breaks are available, a poll revealed today.
It is estimated one million people are loosing out on tens of millions of euro a year by not claiming tax relief on a range of goods including medical expenses and bin tags.
It also found huge levels of confusion about the tax system, with two in five taxpayers stating they are not confident that they understand the system, while almost half say they do not know all the reliefs they are entitled to.
Figures show up to €50 million every year is unclaimed by taxpayers for medical expenses alone, and 55 per cent of people who pay PAYE don't claim tax relief on bin charges. The vast majority of taxpayers questioned believe individual taxes like VRT and stamp duty are unfair.
The Irish Taxation Institute called for the establishment of an organisation to look after taxpayers and protect their rights.
"Currently, there is no dedicated voice to represent the ordinary taxpayer, which is not acceptable," said Chief executive, Mark Redmond.
"Taxpayers are entitled to expect that their rights are independently protected and they are also entitled to a swift, cost-free administrative appeals mechanism if they feel their rights are being infringed. We believe that an independent individual or entity with responsibility for the protection of taxpayers' rights should be established without further delay."
Over 1,000 PAYE taxpayers were surveyed this week for the Red C poll for the Irish Taxation Institute and The Sunday Business Post.
Findings in the Poll revealed:
- 1 in 2 taxpayers do not understand the tax system (1 million people)
- 50 per cent of taxpayers are not claiming tax relief on medical expenses
- 55 per cent of taxpayers are claiming tax relief on bin charges
- 75 per cent of taxpayers believe VRT (Vehicle Registration Tax) is unfair
- 70 per cent of taxpayers believe stamp duty on property is unfair
- 75 per cent of taxpayers believe tax on credit and debit cards is unfair
- 75 per cent of taxpayers believe the standard rate of tax is fair
- 37 per cent of taxpayers do not understand tax certificates
- 700,000 PAYE taxpayers (35 per cent) do not understand all the tax information on P60
Two in five (42 per cent) taxpayers leave their tax affairs to their employer yet a similar number (43 per cent) are not sure if they are getting all their entitlements.