MORE THAN 10,000 taxpayers are losing out on about €10 million in refunds from the Revenue Commissioners, following its decision to bar claims over four years old.
The restriction was introduced by former minister for finance Charlie McCreevy in 2003.
Now, the Revenue are to give more information to taxpayers to make sure that they claim overpayments, or put in claims for reliefs in time to qualify.
However, figures collected by Fianna Fáil Laois-Offaly TD Seán Fleming show that 13,521 people claimed €8,567,000 in refunds on claims that were more than four years old. Insisting that the 2005 experience could be taken as an illustration of the practice in subsequent years, Mr Fleming said 17,259 people could have been expected in 2006 to have reclaimed €10m in tax refunds for four-year-old claims.
"It is fair to say that in 2006 approximately 17,000 lost out at an average of €579 each, due to the introduction of the four-year rule," he said.
Introducing the change at the time, Mr McCreevy said the restriction was balanced since it also meant that the Revenue would not go back more than four years in any investigation of a citizen's taxes.
But this rule is dropped if reasonable grounds for suspicion of tax evasion exists.
In a letter to Mr Fleming, the Revenue defended the use of the four-year rule: "We are not aware that there are significant numbers of taxpayers who know that they have overpaid tax or not claimed reliefs . . . and who do not claim repayment with the four-year period.
"We are constantly reminding taxpayers of their entitlements," said outgoing chairman of the Revenue Commissioners, Frank Daly
"You may also be interested to know that we plan to improve the quality and presentation of the leaflet that goes out with . . . tax credit certificates in early 2008. We will be highlighting the 'four-year' rule for PAYE taxpayers in clear and simple terms . . ." he added.
