Austin Currie
Ceist:385 Mr. Currie asked the Minister for Finance the circumstances in which an income tax refund was paid contrary to a mandate (details supplied); and the proposals he has to rectify the situation. [21725/01]
Written Answers. - Tax Refund.
I am informed by the Revenue Commissioners that a repayment arose in this case following the finalisation of the taxpayer's liability for the tax years 1998-99 and 1999-2000 in respect of credit for relevant contracts tax – RCT – withheld from payments received by the taxpayer as a sub-contractor during the relevant tax years. In October 2000, prior to the income tax, VAT, and RCT tax returns being submitted, the accountant sent a letter to the inspector, signed by the taxpayer and his wife, "mandating" the inspector to make the refund(s) due, direct to the accountant. Because of difficulties associated with making tax repay ments to third parties, including the possible involvement of Revenue in creditor "preference" issues, it is not Revenue practice to repay tax overpaid by a taxpayer to a third party even if requested to do so. Accordingly the cheque for the tax repayment issued to the taxpayer at his home address, which is the official address on record. It is regretted that the Inspector of Taxes omitted to advise the accountant that this request could not be facilitated and a letter of apology is being sent to him.