The Revenue Commissioners refunded some €418 million to PAYE workers who overpaid tax in 2006, it was revealed yesterday.
The figure, relating to 617,000 claims, was released after a meeting of the Dáil finance committee in which the Revenue was accused of not doing enough to encourage people to seek tax refunds or tax relief.
Assistant secretary of the Revenue Commissioners, Norman Gillanders, rejected claims it does not chase people who have not claimed tax relief as vigorously as it pursues workers who have underpaid their taxes or who have not filled out tax forms.
He said the total figure for the number of millions outstanding to taxpayers who have not claimed their entitlements is not known.
Committee chairman Seán Fleming TD (Fianna Fáil) said it appeared that the public are bombarded with advertisements at certain times of the year about the tax returns deadline, but the same vigour is not applied to get people to claim money due.
He expressed concern that half - about 300,000 workers - did not claim relief for paying trade union subscription, and estimated that €45 million of trade unions members' money is held by Revenue in unclaimed relief. Last week, the Institute of Taxation told the committee a survey it carried out showed PAYE workers could be owed as much as €1 billion in tax relief and that about 40 per cent of taxpayers are unaware of their tax relief entitlements. It found 50 per cent of taxpayers were not claiming relief on medical expenses and 55 per cent were not claiming relief on refuse charges.
However, Mr Gillanders said a huge effort is being put into modernising the PAYE computer systems and contact channels. The Revenue has eliminated as far as possible the need for written tax relief claims, and is encouraging claims by telephone and text. He said in December, 550 relief claims were dealt with by text.
"However, in many cases you can bring the horse to the water but you can't make him drink in," he said.
In response, Mr Fleming said the problem was Revenue "don't bring the horse to the water".
Mr Gillanders said typically the PAYE lo-call 1890 numbers deal with 50,000 calls a week, and staff consistently answer 90 per cent of calls. He said most people get through the first time they call and almost everybody gets through the second time.
He said initiatives are under way to encourage more people to claim entitlements. For example, online facilities have been available to PAYE taxpayers since last May and Revenue is planning to open an "internet cafe" facility at its O'Connell Street office.
Mr Gillanders also revealed that to cope with the increasing foreign national population, the Revenue is to recruit Chinese staff and already employs Polish staff. Letters issued by the online division also contain pointers to web-based information in Polish, Lithuanian and two Chinese dialects, he said.
The Revenue, he added, is looking at moving towards automatic repayments for certain types of claims such as hospital and other medical expenses.
He said the problem was despite the Revenue's efforts, some people do not claim what they are owed.