The recent special report by the Ombudsman, Redress to Taxpayers, recommended the provision of a general scheme for payment of compensation for loss of purchasing power in respect of tax refunds made to taxpayers.
I gave my initial response to this report in a statement I issued on 6 November. I also wrote to the Ombudsman on 6 November indicating that I would be studying his report carefully. As the Deputy is aware the Revenue Commissioners have indicated that they were unable to implement certain recommendations of the Ombudsman's report on the basis that they do not have the statutory authority in these cases to pay interest in respect of tax repaid.
My Department, in conjunction with the Office of the Revenue Commissioners, is examining the contents of the report. The general issues raised by the Ombudsman are already being actively examined.