Last week, the Revenue Commissioners issued aneBrief 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 thoughtthat it would be useful to summarise the main features currently in operation below:
A person who has paid taxwhich 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.
The Revenue Commissioners may not make a repayment oftax 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.
A claim for repayment of tax cannot be allowedby Revenue where it is made more than 4 years after the end of the taxyear or accounting period to which the claim relates, but shorter periods can apply in certain specific provisions.
Where a repayment of tax isclaimed within the relevant time limit for repayment claims, the repayment is available to be offset in the normal way.
Where a repayment of tax isclaimed 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.
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