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Online income tax returns set to increase

The proportion of income tax returns filed on the internet is likely to increase this year, according to the Institute of Chartered Accountants in Ireland (ICAI).

Last year 65% of income tax returns were filed electronically. The ICAI predict that this figure will be higher this year.

'All the available evidence points to an increased use of electronic filing by accountants this year - it could be that three quarters of all income tax payers will file this year on ROS, Revenue's on-line filing service,' said Brian Keegan, director of taxation with ICAI.

Taxpayers who file electronically and pay their taxes electronically can avail of a 16 day extension on the October 31 income tax return deadline. Keegan said that the extension is only available where payment, as well as filing, is done on-line.