Repayments, Time Limits and Offsets of Tax

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Last week, the Revenue Commissioners issued an eBrief stating that they have updated the Tax and Duty Manuals to reflect the current position post Finance Act 2012 in relation to claims for repayment of tax, the time limits that apply and the circumstances in which an offset of tax may be made.

I thought that it would be useful to summarise the main features currently in operation below:

• Who is entitled to repayment?

A person who has paid tax which is not due, or which but for an error or mistake in the person’s return would not have been due, is entitled to repayment of that tax.

• Valid Claims

The Revenue Commissioners may not make a repayment of tax unless a valid claim to repayment has been made. A valid claim must contain all the information the Revenue Commissioners may reasonably require to determine if, and to what extent, a repayment is due.

• Time limitation on repayment claims

A claim for repayment of tax cannot be allowed by Revenue where it is made more than 4 years after the end of the tax year or accounting period to which the claim relates, but shorter periods can apply in certain specific provisions.

• Revenue position on offsets

Where a repayment of tax is claimed within the relevant time limit for repayment claims, the repayment is available to be offset in the normal way.

Where a repayment of tax is claimed outside of the relevant time limit, Revenue’s position has always been that it cannot offset any of the tax involved against any other tax liability of the taxpayer as no repayment is due to the taxpayer. Statutory confirmation of Revenue’s position is included in section 128 of Finance Act 2012.

Contact Dylan Byrne, Partner OSK

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