Tax rebate

abednego2022

Hi,

so I am owed a substantial amount of tax back and it got me wondering if revenue should account for inflation when resolving overpayments.

?

holliehobbie

Ha! You’re lucky to get back anything from them in the first place.

Emma2019

There's negative interest rates at the moment. There's an argument they could charge you for holding your money for free.

Pawwed Rig

https://www.boards.ie/discussion/2058226392/tax-rebate

They won't and don't have to pay you interest unless they hold onto your money for an inordinate amount of time* and even then it is a tiny %age. It is allowed for in the legislation.

*can't remember how long it is as in my 12 years of working in tax it has never happened.

SureYWouldntYa

I can't remember where I can across it, but there was a time where you'd get interest on top of any refunds you'd be due, so people would intentionally overpay and get a better return than they would with a deposit account!

May well be heresay or bs but it's a story I'd like to believe

Stratvs

https://www.boards.ie/discussion/comment/118449164#Comment_118449164

I've old Institute of Taxation summaries back to 1990 and in August 1990 the rate was 0.6% per month on tax overpayments which wasn't bad.

The rate Revenue charged on tax underpayments at that time was 1.25% per month.

There were such stories alright but I never found any taxpayer willing to give Revenue anything more than they absolutely had to.

Daxve

The relevant section is 865A

https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/sec0865A.html

Simple interest of 0.011% per day can be claimed after 93 days have elapsed from the date that a valid claim for repayment has been made. So in order to claim interest you must have actually made a valid claim for repayment and Revenue have not acted on it within 93 days. You can't claim interest if you've just left an overpayment on account without claiming the repayment. Additionally, the clock will stop if a query or verification is raised - request for a receipt, backup documentation etc. so you can't just run the clock down in that way if a query comes back. Interest must be at least €10 to be payable.

The section also references 960H which basically says if you owe any other tax the repayment can be offset against that and no interest is payable and if you have any outstanding returns the repayment will be held until they are filed and no interest is payable while returns are outstanding.