Almost two thirds of all Irish taxpayers are missing out on huge possible refunds after failing to submit a tax return last year.
Tax refund specialists Taxback.com has said just 790,000 PAYE taxpayers filed a tax refund for 2020 out of a total 2.9 million taxpayers.
40 per cent of people said a lack of awareness of tax reliefs available to them was the biggest reason for not filing a return according to Taxback’s latest taxpayer survey.
While 19 per cent of respondents said the fear of possibly owing money put them off filing a tax return with the same number saying they found the process too complicated and time consuming.
Some 12 per cent believed that most people are not eligible for refunds, while 10 per cent said they were too lazy.
Only 16 per cent of people said they intended to contribute to the Government’s Commission on Taxation and Welfare, which closed in January 2022, while 48 per cent were not aware of the public consultation with 36 per cent saying they would not get involved.
Taxback.com experts said the survey, taken by more than 1,200 taxpayers, points to “a widespread lack of interest” in tax matters.
Taxback.com director Barry Cahill said: “There aren’t many instances in life that people tend to decline free money.
“Now, not everyone will have had a refund owing last year and others still might allow the reliefs to build up for the allowable four years before claiming. Notwithstanding those considerations, the fact remains that tens, if not hundreds, of thousands of people fail to claim what they’re owed.”
Mr Cahill said the survey shows “either insufficient information and awareness around entitlements coupled with a difficulty in interpreting the language around these things”.
Taxback.com is currently working with employers throughout the country to engage their employees and help them get their taxes in order. This will in turn help employees to secure tax refunds, it said.
“With an increasing number of employers now funding the cost of tax advice for their employees, we would hope that more people will claim the tax breaks they are entitled to,” Mr Cahill said.
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