PAYE 5 year time limit

M

muncher

Guest
I had not completed PAYE tax returns since the year 2000 and have recently had time to try and complete all returns and get back up to date. Revenue advise they are statute barred from going back to 2000, 2001. I estimate that I would be due a refund of circa 3k for these years due to medical expenses. I asked Revenue in a letter (giving resasons for the delay health, young family, etc etc ) if they could go back - Response "We are statute Barred etc ". I then wrote back asking if there are any exception clauses, precidents, or if they have any discretion which permits them to go back further - blank response "we are statute barred" - If I owed them money, I guess they would be able to come after me! Anybody any suggestions or knowledge in this area that could help?
 
Our experience was similar. We were owed tax back from 2006 but the Revenue wrote to us in July 2006 explaining that until we did our 2001 tax returns (April and Dec) that they would not refund us (it was a three figure sum). This we duly did in Sept with considerable difficulty. We received a cheque back pronto with the message - "here is your 2006 refund but we are statute barred from giving you a balancing statement for 2001"! As you say, if we had owed them tax we suspect they would not have been statute barred from collecting from us. Be careful to keep your records re tax returns for a full six years though.
 
The time limit for backdated claims for tax relief is actually the 4 immediately preceding tax year. They are statute barred from extending this. However there is no time limit on them going back for outstanding tax liabilities as far as I know. Them's the rules.
 
Not sure if this helps but might be worth exploring. It may depend on whether you have failed to claim reliefs, or simply been over-taxed eg by Revenue Commissioners error/wrong advice. Regarding old tax liabilities, I think there is no limit where fraud takes place, but otherwise there is.

Incidentally I hear than in England a recent court case has broken new ground by making the Revenue liable for civil damages where their error causes consequential losses eg closure of a business.
 
If you acted incorrectly on foot of incorrect information given out by Revenue then there is no comeback since they still require you to get independent advice if in any doubt. UK case law/precedent is irrelevant in Ireland as far as I know. If you were given incorrect advice by an accountant/tax advisor then you may be able to sue them (in the extreme case) but I don't think that Revenue will/can extend the 4 year rule even in these circumstances. If you were defrauded then you should contact the Gardaí!
 
Case law from all countries operating a common law system is persuasive where conclusive precedents are lacking, especially between UK and Ireland where a single legal ancestry pertains. A P60 is a P60 in both countries!!

'Crown/ state Immunity' has been largely eroded by the courts, even establishing the right of judicial review - a citizen's redress for which we must thank Lord Denning. In the recent UK case I believe the issue was whether a civil servant owed a duty of care when handling a citizen's affairs - and the court said 'yes'. Quite right too.

If conclusive evidence can be produced that a citizen was erroneously treated by a civil servant, I think redress is quite likely.
 
I have lost out on reliefs also and as far as I know they changed it from 10 years to 6 years to 4 years as the period for which one can claim back reliefs. Yet they can collect tax owed. These may be the rules but these rules are inherently unfair and I would bet that once again it is the small people who lose out. Anyone who hires an accountant would have a professional to guide them but for many PAYE workers for whom an accountant is unnecessary these rule changes passed them out .
 
IMO the Accountancy Institutes and the Taxation Institute are seriously af afault here. These unjust laws should have been tackled when they were enacted. Laws where the Revenue can go back as long as they want yet you can only go back 4 years, where interest they pay is less than the interest they charge.
Where are our Institutes?
 
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