Revenue has updated its Operational Manual on Repayments and Offsets of Taxes and Duties to include FA 2012's provision stating that tax repayment claims outside the 4 year-limit cannot be offset against other tax liabilities payable by a taxpayer. An exception to this rule provides that an offset can take effect where Revenue raises an assessment for additional taxes in respect of the same tax year or accounting year as the overpayment which is outside the 4 year time limit.

FA 2012 inserts a new section 865B TCA 1997 which confirms that, where a repayment of tax cannot be made to a person because a claim is lodged outside of the relevant time limit, offset against any other tax liabilities of the person is prohibited. Section 865B also confirms that there is no right of offset outside of that already provided for under the tax codes.

The Operational Manual states that one exception to the general rule applies where tax is due and payable for a tax year or accounting period by virtue of action taken by Revenue, to assess or recover tax, at a time that is 4 years or more after the end of the year or period involved. In such a case, an amount of tax which cannot be repaid because of the application of a time limit, but which relates to the same tax year or accounting period as the tax liability Revenue is pursuing, is available for offset against that liability.

For further details see http://www.revenue.ie/en/practitioner/ebrief/2012/no-252012.html

The updated guidance is available in source material on here