2003 refunds statute barred

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simplyjoe

Registered User
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I have a client who due to a mistake by the HSE was overtaxed/taxed on maternity benefit. This was discovered in 2008 and a refund was applied for. Revenue refuse to process the refund.
Another client was on PAYE in 2003 and due to medical costs and due to leaving work during the year is due a refund of €8,000. He did get an incomplete return submitted in December 07 but there was a lot of missing info. Is there any way to get this money back. It seems ridiculous. Has anyone or any group tried to tackle this scandal. They have stolen our money. Large donation for AAM or other charity if solution found.
 
You can only backdate claims by 4 years. End of story. I'm not aware of anybody challenging this but good luck if you do.

The second client really should have submitted the claim earlier or made sure that it was correct when they eventually did.
 
I believe that revenue go back 25 years - they claim that their is no limit to their search. It looks a bit unfair to me.
 
Slater said:
I believe that revenue go back 25 years - they claim that their is no limit to their search. It looks a bit unfair to me.
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Does anybody know if there has ever been a legal challenge to the fact that the taxpayer can only go back 4 years to look for their money back from revenue, yet revenue can go back much further?
 
ClubMan said:
The second client really should have submitted the claim earlier or made sure that it was correct when they eventually did.
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Comments like this just does not help at all. I did not ask anyone to comment on how smart the guy was. I am sure you live in a perfect world where you get everything correct all of the time! Also the client had personal circumstances that precluded him being able to think rationally.
 
If you don't want comments then don't post on a public discussion forum such as this.
 
I think your only option is to talk to your local politician and hope for the best.
 
There has been no legal challenge, as yet, to the 4 year rule. Its simply not worth anyone's time or effort to mount a High Court or Supreme Court challenge for the sake of a tax refund. Even if someone loses out on a €10,000 refund, they would be mad to risk losing a multiple of this sum in legal fees.

People negatively affected by the 4 year rule should collectively bombard the Ombudsman with complaints. Maybe he might fight to change it.

Its all very well and good to justify the 4 years rule by saying that "The second client really should have submitted the claim earlier or made sure that it was correct when they eventually did" but the point is that large numbers of people are genuinely ignorant of their tax entitlements and many lose out on entitlements because of this.
 
My comment was not by way of justification of the 4 year rule but pointing out what is prudent action given the de facto situation.
 
ClubMan said:
If you don't want comments then don't post on a public discussion forum such as this.
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All I want is comments that help. Its obvious that he should have sent the return in before the 4 year deadline. He now has to put up with losing the €8k and also being told he was stupid.
 
Hi Joe,

Given the fact that there is now a new Minister for Finance (who seems to be a reasonable person), and a very capable and eager FG Finance spokesman, perhaps you and/or your client might wish to make direct representations to either in order to get this problem rectified?
 
simplyjoe said:
All I want is comments that help. Its obvious that he should have sent the return in before the 4 year deadline. He now has to put up with losing the €8k and also being told he was stupid.
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I never said that he was stupid. And I posted the comment as much for the benefit of others who might be reading this thread before submitting claims. Please read my posts more carefully and desist from insinuating that I have said offensive things that I never actually did.
 
I contacted the tax office and explained the extenuating personal circumstances. The officer assured me that the refund would be made.
 
simplyjoe said:
I contacted the tax office and explained the extenuating personal circumstances. The officer assured me that the refund would be made.
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A refund in respect of both cases? I have not seen a case yet where they have been prepared to set aside the limitation, so let us know how you get on.

To play devils advocate, the reason the four year rule was brought in was, I would imagine, was to reduce the amount of time the tax office had to spend digging through old files and processing old claims. Given the recessionary conditions and public service cutbacks now being called for, is it in the Governments interest to remove the four year limitation and incur additional costs? Is there any other organisation that allows you to wait over four years to make a claim?
 
webtax said:
A refund in respect of both cases? I have not seen a case yet where they have been prepared to set aside the limitation, so let us know how you get on.
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This news isn't THAT surprising given that the client claimed the relief within the 4 year period by filing the relevant Form 11. I thought it harsh that the claim was rejected as it was incomplete. Good to see that this particular case was resolved even if the substantive problem remains.


Nice theory but you forget that the Revenue still retain pretty much unlimited power to reopen files and process assessments for any number of past years when they suspect a taxpayer of owing arrears. Natural justice would suggest that it is unfair and unjust of them to deny taxpayers the same rights as they themselves enjoy.
 
The case where the maternity benefit was taxed has not been resolved despite the fact that one government body (health board) erroneously taxed what should not have been taxed and the other government body refuses to fix the problem when it has been discovered.
 
simplyjoe said:
The case where the maternity benefit was taxed has not been resolved despite the fact that one government body erroneously taxed what should not have been taxed and the other government body refuses to fix the problem when it has been discovered.
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What are you referring to? What case of MB being taxed? Surely the only body that can tax MB and rectify matters if this happens (which sounds very odd) is Revenue?
 
ClubMan said:
What are you referring to? What case of MB being taxed? Surely the only body that can tax MB and rectify matters if this happens (which sounds very odd) is Revenue?
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Basically what has happened is that the health board paid the employee the maternity benefit and subsequently got refunded the money back from the Social Welfare. When they administered the payment to the employee they included it as taxable income. So, in effect, the maternity benefit was taxed. Widespread problem affecting a lot of people.
 
I thought that SW paid MB. How come the HB were paying it here? Or do you mean salary payment with the SW MB payable by the employee to the employer in which case there is a danger of the employee losing out on the tax free nature of MB without going digging?
 
ClubMan said:
Or do you mean salary payment with the SW MB payable by the employee to the employer in which case there is a danger of the employee losing out on the tax free nature of MB without going digging?
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That is my understanding of simplyjoe's previous post.
 
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