Claims for tax refunds double as workers get €585m
THE number of workers claiming tax back has doubled in two years.
The trend forced the taxman to pay out an unprecedented €585m last year, the Irish Independent has learned.
Claims in the top four areas of rent, health expenses, trade union subscriptions and service charges increased from 1.1 million to almost two million in just two years.
According to figures provided by the Revenue Commissioners, 864,076 PAYE workers received €584.7m back last year.
Claims for tax back on rent more than doubled from 181,291 in 2006 to 469,817 last year. Similarly, claims for health expenses rose from 125,147 to 296,530, while service charges claims jumped from 267,271 to 409,632.
The payouts have also doubled, with rent alone accounting for €251m refunded last year.
In 2004, refunds were only given in 401,945 cases at a cost of €277.7m. That figure has soared -- with 864,076 refunds last year amounting to €584.7m.
But thousands of workers are still not claiming their tax credits, leavings millions of euro unclaimed in the state coffers.
Last night, Fine Gael's Denis Naughten said the failure to better inform people of their entitlements was a "hidden stealth tax".
And the Fine Gael spokesman on immigration and integration warned that the Government could move to restrict tax claims and move the timeframe from four years to three years or shorter.
He argued that people were not aware of all their entitlements and how these affect PSRI payments. One tax credit called "flat rate employment expenses" is not widely known about, he said.
"It's a little unknown source of tax relief that's available to any PAYE workers. It's a standard reduction which has been set for various occupations. The amount is based on an estimate of expenses in these occupations not covered by employers [and] has been agreed by the Revenue and various representatives such as unions," he said.
Credits
Under the tax credit, a teacher, for example, is entitled to a reduction of €518, journalists €381, carpenters €212, and nurses €733 to cover uniforms or work clothes.
According to the Revenue Commissioners, workers can only claim back for the last four years, leading to speculation that thousands of taxpayers are losing out on millions.
According to the Revenue Commissioners, many taxpayers are not aware of the tax credit for bin charges. However, if taxpayers paid their charges on time and in full last year, they are still entitled to claim the charges this year.
In addition, many people are unaware that they can submit all their medical expenses covering doctors' visits, x-rays and hospital treatment.
- Aine Kerr Political Correspondent
