262. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance if consideration will be given to aligning the period of time in which individuals and businesses can claim for tax relief or overpayment from the Revenue Commissioners, with the period of time in which the Revenue Commissioners can seek underpayment due to error that is, four years versus six years; and if he will make a statement on the matter. [26617/26]

I am informed by Revenue that section 865 Taxes Consolidation Act 1997 (TCA) provides a general right to repayment of tax where a person has paid tax which is not due. Section 865(4) TCA provides that that right is subject to making a claim within a statutory limit of four years after the end of the chargeable period to which the claim relates. That limit is binding on Revenue as well as on taxpayers.

Determinations of the Tax Appeals Commission in differing appellant circumstances confirm there is no discretion in the application of the four-year rule for claiming repayments.

In 2003, when section 865 TCA was introduced, Revenue’s general right to make or amend assessments was also reduced to four years. Previously, the general time limit on the making or amending of assessments by Revenue had been between six and ten years. When the four-year time limits were introduced in 2003 the then Minister for Finance stated he was satisfied that they achieved the necessary balance between establishing a fair and uniform system for taxpayers while providing necessary protection for the Exchequer. The four-year time limits now applies to both self-assessed taxpayers (known as “chargeable persons”) and PAYE taxpayers, although the limits are slightly different.

The four-year limit for Revenue to seek an underpayment of tax from persons other than chargeable persons who are not required to file a return (for example, taxpayers whose only income is subject to PAYE) runs from the end of the chargeable period to which the assessment relates. For example, for the chargeable period of 2022, a Revenue officer has, in most cases, until 31 December 2026 to make or amend that assessment

As a general rule, Revenue cannot make or amend an assessment on a chargeable person more than four years after the end of the year in which a return is delivered. For example, if a tax return for 2022 was delivered on return date of 31 October 2023 (extended to mid-November for online filers), Revenue has, in most cases, until 31 December 2027 (i.e., four-years after the return has been filed) to make or amend an assessment.

In certain limited circumstances, Revenue’s right to make or amend an assessment on a chargeable person is not time limited. These circumstances include where fraud or neglect is suspected, or where the person has not made a full and true disclosure of all material facts necessary for making an assessment, or where no return has been filed.