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Finanças error forces taxpayers to return IRS refunds

Photo: Archive / Global Images - Finanças error forces taxpayers to return IRS refundsCategory B taxpayers with organised accounting will have to return refunds from the IRS, after a reading error in the tax authorities’ computer system was detected, which generated over generous refunds for those taxpayers.

The error was detected by the Finanças at the end of last week, so for now the settlement of Category C declarationshas been suspended.

Tax and Customs Authority (AT) promises to notify taxpayers of their new settlements, corrected, by the end of the month.

According to the newspaper Jornal de Negócios, the tax authorities did not take into account all the income declared by those taxpayers. Due to the error, when calculating the tax payable, the refund was much more generous to the taxpayer than it should have been.

“The problem originated from a ‘reading’ error for the purpose of settling a field regarding the taxable profit indicated in Annex C of model 3,” said an official source from the Tax and Customs Authority.

The problem had already been detected by accountants, who reported it to the Order of Certified Accountants, after detecting unexpected refunds to category B customers.