Revenue refuse to compensate widows who overpaid taxes

THE Revenue Commissioners are digging in their heels by refusing to compensate public service widows who paid too much tax — despite continued criticism from the Ombudsman.

Describing their attitude as unbelievable, Ombudsman Kevin Murphy again attacked the State taxman for failing to pay compensation to 12

people for delays in paying tax rebates that were due to them.

The row centres over the legal interpretation of a recommendation made by the Ombudsman last November. It was the first time in the history of the office a recommendation was not

acted upon.

The Revenue are now on a collision course with the Dáil finance committee, which is likely to recommend the payments be made irrespective of the reservations.

But Mr Murphy denied this was a head-to-head battle between himself and Revenue chief Frank Daly, saying: “This is business, not personal.”

Revenue have accepted the widows and other taxpayers had been sent tax bills above what they were obliged to pay. But although the commissioners are willing to refund the amount overcharged, they are refusing to pay

interest on that money, some of it

dating back to the 1980s.

“At no stage was there any possibility of a settlement. I regret that. That is not the normal procedure and that is why this is the first occasion it has ended up before parliament,” Mr Murphy said.

While Mr Murphy said his recommendation directs them to pay the

interest, Revenue says there is no specific statutory power allowing them to pay the compensation so it is not their fault. The commissioners also warn that paying compensation could open the doors for a raft of other claims.

Yet the Revenue have never come up with any figure specifying the cost of the repayments.

“In my view, where injustice has

occurred, failure to rectify it is itself further maladministration,” Mr Murphy said.

“The continued refusal of Revenue to compensate the complainant

covered in my report is not only

unjustified but it is perpetuating and exacerbating an injustice which

Revenue acknowledges exists.”

But Revenue Commissioners chairman Frank Daly insisted a statutory basis to make the payments was

required.

“While extremely sympathetic to the situation, Revenue simply finds

itself in the position where we believe a statutory basis on which to implement the recommendations is needed. We do not have this and it is not open to us, and to me in particular as

Accounting Officer, to disburse public monies in those circumstances,” he said.

Labour finance spokesperson Joan Burton said she found the attitude of the commissioners to be extremely

arrogant. “I am actually rather shocked by the tone and content of their

report,” she said.