To ask the Minister for Finance his views on reducing the number of years from six years as the period of time required by the Revenue Commissioners for the holding of receipts by applicants claiming health relief for health expenses; and if he will make a statement on the matter. – David Stanton.
* For WRITTEN answer on Thursday, 26th June, 2008.
Ref No: 25189/08
REPLY
Minister for Finance ( Mr Lenihan) :
I am advised by the Revenue Commissioners that the requirement to submit receipts with claims for tax relief for health expenses was waived in 1998. This was one of a number of customer service initiatives taken by Revenue designed to streamline the administration of claims, reduce processing times and therefore deliver an improvement in the quality of service to taxpayers. Claims for health expenses are accepted and processed on the basis of the figures shown on the relevant claim form submitted by the taxpayer. Some claims may subsequently be selected for a “credibility” check and where it seems from this ‘credibility’ check that the claim is not in accordance with the taxpayer’s circumstances, the taxpayer will be consulted to clarify the claim. In these circumstances, certain documentation to support the taxpayer’s claim may be sought, and it is for this reason that there is a requirement that certain records be retained.
The relevant legislation – Section 886A of the Taxes Consolidation Act 1997 – requires certain records to be retained for a period of six years. I am satisfied that this is a reasonable period of time and is necessary for audit and examination/verification purposes and furthermore, does not impose an undue burden on taxpayers. I am advised by the Revenue Commissioners that no particular difficulties have been encountered with this requirement. However, the matter will be kept under constant review with the aim of ensuring that no unnecessary burden is imposed on compliant taxpayers.
DÁIL QUESTION NO 63 & 64To ask the Minister for Finance the number of detailed examinations that have taken place in each of the years 2000 to 2007 inclusive on tax relief claimed in respect of medical expenses; the number of cases for which receipts were not available; the action taken; and if he will make a statement on the matter. – David Stanton.
* For WRITTEN answer on Thursday, 26th June, 2008.
Ref No: 25190/08
To ask the Minister for Finance the number of examinations that have been initiated to date in 2008 in respect of claims for relief in respect of tax relief claimed on foot of medical expenses; and if he will make a statement on the matter. – David Stanton.
* For WRITTEN answer on Thursday, 26th June, 2008.
Ref No: 25191/08
REPLY
Minister for Finance ( Mr Lenihan) :
I propose to take questions 63 and 64 together.
I am advised by the Revenue Commissioners that they are unable to provide the number of detailed examinations that have taken place in each of the years 2000 to 2007 inclusive, and for 2008 to date, on tax relief claimed in respect of medical expenses and the number of cases for which receipts were not available.
Revenue have advised me that claims for credits are selected for checking based on a number of criteria, primarily risk. Claims are also selected for checking on a random basis. Revenue’s computer systems identify cases selected for checking/audit/investigation, but do not provide information on the specific credits or reliefs selected to be checked in each case. I have also been advised that where a credit/relief is checked, e.g medical expenses, and the supporting documentation, including receipts, is not provided or is incorrect, the relief claimed is withdrawn and the customer’s tax credits or tax assessment is amended accordingly.