The Revenue Commissioners refunded more than €820 million to PAYE workers who overpaid tax over the past two years, according to new figures.
Minister for Finance Brian Cowen revealed yesterday that 1,200,863 refunds were issued between November 2004 and November 2006, totalling €820,045,585.
Some 288,765 refunds related to underpayments by the Revenue. The balance related to people claiming refunds for medical expenses and tax-refundable expenditures.
Dáil Committee on Finance chairman Seán Fleming said last night that he believed the refunds were the tip of the iceberg and that "hundreds of millions of euros more" were outstanding to PAYE workers.
"It is good to see the publication of the figures, but there is an awful lot more owing. The Revenue Commissioners are not taking enough of a proactive approach to encouraging PAYE workers to claim what they are entitled to. They have a system in place but the problem is people don't know about it."
The committee is compiling a report on PAYE repayments which is due to be published before the end of February. It is understood that the report will criticise the Revenue for not doing enough to encourage people to seek tax refunds.
Last week senior Revenue official Norman Gillanders denied claims that the Revenue 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.
Mr Gillanders said a huge effort was being put into modernising the PAYE computer systems and contact channels. The Revenue had eliminated as far as possible the need for written tax relief claims and was encouraging claims by telephone and text. He said initiatives were under way to encourage more people to claim entitlements.
Fianna Fáil TD Charlie O'Connor, who tabled a Dáil question to Mr Cowen on the matter, said last night that the State should not hold on to money that people were entitled to. He said it was important that people were aware of their entitlements and claimed what they were due, and that the Revenue did all in its power to ensure this happened.