Irish Tax System Confuses Taxpayers

by Amanda Banks, Tax-News.com, London

27 June 2006

The Irish Taxation Institute has called for the establishment of a taxpayers' advocate after the results of a recent survey revealed that one million Irish taxpayers were unaware of the tax reliefs that they are entitled to claim.

The survey, which was carried out by Red C for the Irish Taxation Institute and the Sunday Business Post found that about half of Ireland's PAYE taxpayers do not understand the tax system. To illustrate the point, the survey found that as much as EUR50 million is left unclaimed in medical expenses alone by taxpayers.

Commenting on the survey, Mark Redmond, the Chief Executive of the Irish Taxation Institute noted that while tax cuts over the last decade have undoubtedly helped the Irish economy, they haven't necessarily made the system itself any better.

"This depth of feeling towards what is in effect our own money is not sustainable and taxpayers themselves are telling us as much today. Lowering the level of taxes in Ireland since 1997 has had a hugely positive impact on all our lives but low rates alone don’t make a good tax system. We need to reform the structure of our tax system," he stated, according to Finfacts.

Among the proposals offered by the ITI to remedy the situation is the creation of an independent taxpayer advocate which taxpayers could turn to if they feel that they have received unfair treatment at the hands of the tax system.

"This role would include acting as an advocate for individual taxpayers who feel disadvantaged unfairly by the system. It would also include evaluation of the fairness and efficiency of our tax administration at a systemic level with appropriate reporting and recommendation to the Oireachtas. Such an office has the potential to bring real value to our tax system," Mr Redmond stated.

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