Technical Problems Delay Irish Tax Refunds

by Caroline Maxwell, Tax-News.com, London

14 March 2002

The Revenue Commissioners in Ireland have revealed that due to delays in implementing changes to their computer system, thousands of self-employed taxpayers will have to wait several months for refunds of overpaid tax.

Taxpayers are entitled to refunds from the end of the tax year, but the revenue department's failure to implement new software has meant that refunds on overpaid tax and on other Government tax relief incentives are likely to be subject to substantial delays.

A Revenue spokesman this week revealed that so far 500 cases affected by the delays have been brought to the Department's attention. However the number of affected taxpayers is expected to increase by several thousand now that the income tax forms - the release of which was also delayed - are available. Explaining the Government's strategy in the absence of an effective computerised solution, he stated that:

'We will be making manual interim refunds pending the availability of the computer system. We will begin to assess these manually in the coming days and then issue them.'

Small business groups have expressed fears that the delay in returning refunds could have a detrimental effect on the sector. Speaking on behalf of the Small Firms Association (SFA), Assistant Director Patricia Callan said:

'We would have concerns about the viability on smaller companies in light of tightening economic conditions and would be anxious that the Revenue would not contribute further to these difficulties.' She added that: 'We would call on the Revenue Commissioners to do everything in their power to speed up this process.'

Recommended