Dan Boyle
Ceist:224 Mr. Boyle asked the Minister for Finance his views on the special report of the Ombudsman, Redress to Taxpayers; and the action he intends pursuing in this regard. [21659/02]
Written Answers. - Ombudsman's Report.
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. Indeed, the general issues raised by the Ombudsman are already being actively examined.
I sympathise with the individuals concerned but as I indicated in my initial response to the Ombudsman's special report, any solution has to be on a general basis taking all of the issues into account, including the amount of revenue involved. In this regard, the House might be interested to note that the Revenue Commissioners pay out billions of euro in tax rebates each year. Consequently, the Exchequer implications of a general interest scheme must also be weighed. The parameters of any statutory scheme which may be considered to address the repayments issues will need to be thoroughly and carefully examined. As with all legislative changes, such a scheme if introduced would apply prospectively. I will be considering the result of this examination in the context of the Finance Bill.