Dáil Éireann Debate, Wednesday - 1 December 2004
137 Mr. J. Higgins asked the Minister for Finance the efforts that are being made to identify landlords in the private rented sector who fail to declare their investment properties; and if he will make a statement on the matter. [31628/04]
View answer138 Mr. J. Higgins asked the Minister for Finance if there are plans to investigate landlords in the private rented sector who refuse to accept rent allowance from tenants in order to ascertain if they are declaring their investment properties. [31629/04]
View answer139 Mr. J. Higgins asked the Minister for Finance the number of landlords in the private rented sector identified as failing to declare their investment properties in the past five years to date. [31630/04]
View answerI propose to take Questions Nos. 137 to 139, inclusive, together.
I am advised by the Revenue Commissioners that landlords in the private rented sector are controlled and monitored for tax compliance purposes in the same way as taxpayers in all other sectors. Special compliance districts, set up under the restructuring of Revenue, monitor any activity that has been brought to their attention, whether through returns lodged, claims made or any other source.
Whilst Revenue are not in a position to state the number of landlords in the private rented sector who failed to declare their investment properties in the past five years, all information available to and information received by Revenue, including information from tenants via rent relief forms, is acted upon on an ongoing basis with a view to ensuring compliance with tax law.
Tenants wishing to claim rent relief on private rented accommodation are required to complete the relevant form, Rent 1, and provide details of the landlord's name, address and personal public service, PPS, number. These forms provide useful information for the Revenue Commissioners. Forms received without PPS numbers are traced by reference to name and address.
I am also informed by the Revenue Commissioners that projects specifically aimed at investigating landlords in the private rented sector are regularly undertaken in all regions to monitor this sector. These focus on identifying cases where income would appear to be understated vis-à-vis properties held. Arising out of these projects, some cases are referred for further investigation and audit by Revenue. Throughout 2003, audits were concluded in 250 cases where rental income was the main source of income returned. The yield in all 250 cases was €3.25 million in tax, interest and penalties.
Cases are selected for investigation by Revenue on the basis of perceived tax at risk. This means that most cases are chosen for audit-investigation following a risk analysis that may suggest the possibility of non-compliance with any of the taxes. Cases may also be selected on the basis of external-further information provided to the Revenue Commissioners.
The Deputy may also wish to note that under the Residential Tenancies Act 2004, there is provision for supply of tenancy registration details or confirmation of the fact of registration by the Residential Tenancies Board to the Revenue Commissioners. This Act requires such data to be supplied by the board at the request of the landlord or at the request of the Revenue Commissioners on furnishing the PPS number or other unique identifier to the board.
