How does a sole trader get a refund of overpaid income tax paid more than 6 years ago

[CuriousCork]

A friend of mine, a sole trader, has just discovered that he overpaid income tax of €11,000 in 2017. However the Revenue wont refund it as they say that they do not pay refunds more than 4 years old. His own accountant has confirmed that is the case. (His old accountant is now retired and is beyond the statute of limitations to be sued.)

Any solution to this issue?

 

[ClubMan]

Any solution to this issue?

Don't think so.

Four year rule

This page explains the details on the four year time limit

www.revenue.ie

 

[cally1990]

No, there has been numerous tax appeals with https://www.taxappeals.ie/ and each fail due to the 4 year rule

Eg

https://www.taxappeals.ie/_fileupload/determinations/2020/01tacd2020.pdf

It's pretty clear cut. No case here

The document for cases you CANNOT appeal (from tax appeals commission) was updated and they will NOT hear theses cases anymore either because there is nothing to appeal :-(

 

[CuriousCork]

Whilst my friend's accountant was clearly negligent, the Revenue made no attempt to repay the money. So much for collecting taxes in a fair and transparent manner!

 

[T McGibney]

Whilst my friend's accountant was clearly negligent, the Revenue made no attempt to repay the money. So much for collecting taxes in a fair and transparent manner!

Negligent how?

A friend of mine, a sole trader, has just discovered that he overpaid income tax of €11,000 in 2017. However the Revenue wont refund it as they say that they do not pay refunds more than 4 years old. His own accountant has confirmed that is the case. (His old accountant is now retired and is beyond the statute of limitations to be sued.)

This isn't strictly true. If a valid claim for the refund (eg a tax return) was filed with Revenue within the 4 year time period, the refund can validly be paid thereafter. This morning I was on to Revenue to find out the mailing address of a 2019 tax refund cheque that they issued last week.

Did your friend not file a tax return for 2017?

 

[jpd]

Your friend should claim the tax refund amount from his accountant

 

[T McGibney]

Your friend should claim the tax refund amount from his accountant

How?

A sole trader failing to file a valid tax return within 4 years of the year end actually constitutes a criminal offence on their part. How is that someone else's fault?

 

[Marsupial]

Whilst my friend's accountant was clearly negligent, the Revenue made no attempt to repay the money. So much for collecting taxes in a fair and transparent manner!

What did Revenue do wrong here? They collected the tax paid to them in a fair and transparent manner.

And, although a very talented organisation, they're not psychic so presumably wouldn't have been aware of the overpayment until after the 4 years limit had passed. I assume that they then advised your friend - in a fair and transparent manner - that, due to the provisions of Section 865 (4) of the Taxes Consolidation Act 1997, they were legally unable to refund his money.

Surely your friend didn't expect revenue to break the law of the land?

 

[T McGibney]

Surely your friend didn't expect revenue to break the law of the land?

There's nothing illegal or unlawful about a tax repayment being made outside the four-year rule window.

The point of the rule is that it removes any obligation from Revenue to issue such a repayment.