Income Tax Repayments

Collectors
The Collector of Taxes will tell you that repayments cannot be made where there are open years. However, Inspectors are able to authorise repayments to such an extent as they see fit during the course of an enquiry. I have recently secured a substantial repayment for a client where there are a number of open years. It is worth having a discussion with the Inspector of the repayment is greater than the potential tax at stake from the findings of the enquiry to date. The Inland Revenue cannot hold onto a repayment where they have no legal charge. It is worth bearing in mind that should amounts become due as a result of the enquiry that interest will be charged. If no repayment is made credit interest will accrue on the balance owed.