asked the Minister for Finance in respect of the years (i) 1987 and (ii) 1988, the total number of interim refunds of withholding tax actually made; the value of these refunds; and whether the refund system is working satisfactorily.
Ceisteanna — Questions. Oral Answers. - Withholding Tax.
7.
Statistics are not readily available which would enable the information requested by the Deputy in respect of interim refunds of withholding tax deducted from payments for professional services to be given separately from other repayments of withholding tax. Such information could not be obtained without undertaking inquiries which could be carried out only at a disproportionate cost.
Withholding tax was deducted from payments made on or after 6 June 1987. In 1987 a total of £20.1 million withholding tax was collected and repayments for that year were insignificant. For the year 1988 a total of £57.9 million withholding tax was collected and repayments totalling £6.6 million were made in 1,473 cases. The administrative procedures for making refunds of withholding tax are working satisfactorily.
I am always hesitant to suggest burdening the Revenue Commissioners with further statistical inquiries but I would ask the Minister how it is that he cannot say how many interim refunds, as opposed to complete refunds, have been made. Surely, this is a separate procedure and requires separate decisions? Is the Minister not in a position to say whether more than a handful of people have availed of this so called relief on hardship grounds? Surely there must be some indication to the Revenue Commissioners as to whether anybody has ever got one halfpenny back on the grounds of hardship.
I do not have the information the Deputy is seeking. I understand that statistics are not compiled in the way the Deputy has framed his question. There is no special category for hardship and records are not kept of hardship cases alone.
This House spent a considerable amount of time two years ago debating and putting in place such an interim refund. The Minister specifically amended the Bill to make provision for such an arrangement. Is the Minister now saying that the Revenue Commissioners cannot tell him whether these provisions have been operated on one single occasion to refund one halfpenny in the case of hardship?
I am not saying that. What I said already is that in 1988 refunds totalling £6.6 million were made in 1,473 cases.
How many interim refunds were made?
I do not have that information.
(Limerick East): Is the Minister aware that certain medical practitioners are now billing their patients to recover the 35 per cent withholding tax which is being withheld by the VHI from their fees? If the Minister is so aware, does he intend doing anything about it?
If the Deputy wants to give me details of where this is happening or any information to that effect, I will be only too glad to follow it up.