Dáil Éireann debate -
Tuesday, 27 Feb 1990

Vol. 396 No. 3

Written Answers. - Retention Tax.

John V. Farrelly

Question:

96 Mr. Farrelly asked the Minister for Finance the total amount of money collected in retention tax from professional fees in each of the past two years; the total amount retained from the medical profession; the length of time between the first and second rebate; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

Following is the information requested in so far as it is available:

Payments of witholding tax on professional fees.

	1988	1989
	£m	£m
Gross Amount Paid	57.93	63.20
Amount repaid	6.56	14.50
Net amount paid	51.37	48.70

The gross amounts collected from the General Medical Services (Payments) Board and VHI in 1988 and 1989 were £25.12 million and £31.40 million respectively. Statistics are not available which would enable the amount of refunds of these payments to be ascertained.

It is not clear to what the reference to "the length of time between the first and second rebate" mentioned in the question relates. It is presumed, however, that what is involved is the timing of interim refunds. Claims for interim refunds of withholding tax on professional fees are given priority in tax districts dealing with the tax affairs of professional persons and are normally processed within seven days of receipt. On submission of the F45-1 form(s) by the taxpayers, the refund claim will be processed without delay, provided the conditions necessary for payment of an interim refund are satisfied. Subsequent claims for refunds of withholding tax within the same accounting period are also dealt with as expeditiously as possible subject to the verification of such claims by the inspector of taxes.