Revenue has recently issued an e-brief confirming the position with regard to the time limits for repayment/offset of tax.
Section 128 Finance Act 2012 confirms Revenue’s position which is that where a repayment of tax cannot be made to a person because a claim is lodged outside of the relevant time limit of 4 years, offset against any other tax liability is prohibited.
There is an exception to this rule which applies in the case whereby Revenue have taken action to assess or recover tax for a particular tax year or accounting period at a time which is 4 year or more after the end of the tax year or period involved.
In such cases an amount of tax which cannot be repaid because it’s outside the 4 year limit but which relates to the same tax year or accounting period which is being investigated is available for offset against that liability.
Further information on this topic can be found on the Revenue website at: http://www.revenue.ie/en/practitioner/ebrief/2012/no-252012.html
If you have any queries regarding the above please feel free to contact us.