Written Answers. - Tax Reliefs.
Michael D. Higgins
Question:
53
Mr. M. Higgins
asked the
Minister for Finance
the steps being taken to make contact with the estimated 120,000 mortgage holders who have not made contact with the Revenue Commissioners regarding the provision of banking details for the new mortgage tax relief scheme which will operate from 1 January 2002; and if he will make a statement on the matter.
[29952/01]
John Dennehy
Question:
94
Mr. Dennehy
asked the
Minister for Finance
the number of persons in receipt of mortgage interest relief; the number of persons who have to date completed the necessary documentation to allow them to continue to receive this benefit when it is given at source in 2002.
[30067/01]
I propose to take Questions Nos. 53 and 94 together.
The issue raised by the Deputy relates to the new scheme of administering tax relief in respect of qualifying mortgage interest – tax relief at source. This is a major simplification measure that I announced in my Budget Statement in December 1999. The essence of this scheme is that, from 1 January 2002, tax relief on qualifying mortgage interest will no longer be administered through the personal tax system but will instead be given at source by the financial institutions, the mortgage lenders, which will then be recouped by Revenue.
There are in the region of 477,000 taxpayers in receipt of tax relief for mortgage interest. To instruct the lending institutions to allow the tax relief at source, it is necessary to have full loan account details for each claimant. Earlier this year, Revenue undertook an extensive matching exercise with the lending institutions to match the loan account details with the appropriate name and address for each borrower.
Full matches were achieved for 200,000 cases and Revenue wrote to these borrowers and advised them to verify the matched loan details and to contact Revenue only if there was an error. In the remaining cases, where a satisfactory match was not achieved or where there was some doubt, Revenue wrote to the borrowers concerned during June and July 2001 requesting loan account details. In the case of local authority mortgage holders, estimated at 70,000 accounts, who are currently claiming tax relief, a simplified scheme is being introduced from next January which does not require a form to be returned.
To date, 87,000 forms have been returned. It is estimated that in the region of 120,000 claimants who should have returned the forms have not yet done so. Revenue has just completed a reminder notification to all those who have failed to respond to the initial letter with their loan details. This reminder notification is being supported by an extensive radio and press advertising campaign and is expected to result in the majority of outstanding forms being returned before the end of the year.
The majority of those currently entitled to the relief will receive it at source from 1 January next. Any claimants who are late in returning their loan account details to Revenue will still receive their full entitlements as soon as is practicable following receipt of such details by Revenue.
