A
Bogus Foreign Deposit Accounts
Time Limits on Revenue Claims against
the Estates of Deceased Persons
The commentators have sought to back up their argument by pointing
out that the Statute of Limitations does not apply to Revenue cases.
This is correct.
The normal
limitation period is defined as the period prescribed by the Statute of
Limitations or any other limitation enactment. Since the Taxes Acts are
specifically excluded from the Statute of Limitations, the "limitation
enactments" would perhaps be the Taxes Acts themselves. The Taxes
Acts do not provide a special time bar on commencing actions against
the estates of deceased persons.
STATUTE OF LIMITATIONS:-
Under Section 498 of the Income Tax Act, 1967, a 10 year limit on claims applies. The
10 years are counted back from the year prior to the year of receipt of claim or of the
intention to claim.
Claim/intention received 1995/96 10 year limit applies to 1994/95, 1993/94, 1992/93,
1991/92, 1990/91, 1989/90, 1988/89, 1987/88, 1986/87, 1985/86. A special time limit
period for claims in respect of all income arising during the administration of an estate
shall not expire before the end of the third year following the year of assessment in
which the administration of the estate was completed (Section 455(3) Income Tax Act,
1967).
I always thought Revenue could go back as far as they wanted but that an individual could only make a claim going back 4 years. You have to keep your records for 6 years and therefore for people who are asking to prove things beyond 6 years it could be next to impossible, so it's perhaps better to keep everything or destroy everything depending on your point of view.
Seems very unfair and dare I say, typically Irish-One law for one and a different one for the other. By the way the time limit on refunds was ten years until a few years ago."Four-year rule
As you are aware, a taxpayer is only entitled to make a claim for a refund of tax within four years of the end of the chargeable period to which the claim relates. Revenue Inspectors are subject to a four-year time limit for investigating claims made however there is no time limit in cases of suspected fraud or neglect. This effectively gives Revenue an open-ended period in which to make enquiries as to a taxpayer’s return."
Where a taxpayer fails to pay the correct amount of tax to Revenue the rate of interest levied on overdue tax is 0.0273% per day or approximately 10% per annum. Where a taxpayer overpays tax to Revenue interest of 0.011% per day is paid to the taxpayer, which approximates to 4% per annum. In addition, where the overpayment cannot be said to be as a result of the misapplication of the law by Revenue, the interest only runs from the day 6 months after a valid claim for the refund has been filed with Revenue.
Why doesn't anyone challenge these acts/laws (if they are indeed law?), which seem to be passed at the Governments whim and with a 'put up and shut up' attitude?
Did you know that Germany has its own taxation court, which allows citizens to challenge tax laws etc?
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