Revenue mistake results in TDs paying incorrect amount of tax

THE Revenue Commissioners last night denied a systems error, which resulted in TDs being charged the incorrect amount of tax, was a widespread problem which would affect other workers.

Also yesterday, Taoiseach Bertie Ahern indicated that the Government would initiate a publicity drive to inform taxpayers of their entitlements to refunds - a right many do not avail of.

The Revenue mistake, which resulted in some TDs, senators and Oireachtas staff members underpaying and overpaying tax, was brought to the attention of all Dáil employees yesterday in a circular from the salaries unit.

“Please be aware that an error has been encountered on the new Revenue System which has resulted in people both underpaying and overpaying tax,” the circular reads.

After detailing how staff may have been issued with incorrect tax certificates, the circular indicates that the Oireachtas salaries unit intervened when they noticed “large discrepancies on tax certs which have issued.”

However, a spokesman for the Revenue said the error was not widespread.

“We are sending out 2.2 million tax certificates. Some of them will always be wrong but this is not a widespread problem,” he said.

Nevertheless, the mistake was cited during Leaders’ Questions by Labour leader Pat Rabbitte as further evidence of a malfunctioning tax system unfairly pitted against the ordinary PAYE worker. In particular, Mr Rabbitte criticised the fact that 400,000 tax certificates have still not been issued 10 weeks after the Budget.

Fine Gael leader Enda Kenny also called on the Government to introduce a public information campaign to address the fact that 60% of tax refunds due for medical expenses, bin charges and private rents are not claimed.

“Why is there no really strong public information campaign in respect of the rights of PAYE workers and the simplicity that should be involved in making claims. If 60% greater compliance was due to the Revenue Commissioners, an all out attack would be made to secure the outstanding moneys,” he said.

Mr Ahern said: “I have no problem, in conjunction with the Department of Finance and the Revenue Commissioners, promoting a campaign to highlight the situation for PAYE people.”