Dáil Éireann Debate, Wednesday - 2 April 2008
92 Deputy Leo Varadkar asked the Minister for Social and Family Affairs his views on his Department putting in place a system to ensure that landlords to which his Department makes payments provide their PPS number; and if he will make a statement on the matter. [12131/08]
View answer117 Deputy Jan O’Sullivan asked the Minister for Social and Family Affairs if, in view of the failure of his Department to collect approximately €200,000 per year in tax from non-resident landlords who his Department pays rent supplements to directly, he will conduct a cost benefit analysis of introducing a paper-based system to collect this tax; and if he will make a statement on the matter. [12189/08]
View answer145 Deputy Ruairí Quinn asked the Minister for Social and Family Affairs the steps he is taking to improve co-operation between his Department, the Private Residential Tenancies Board, Revenue Commissioners and local authorities in relation to the effective and coordinated administration of rent supplement. [12179/08]
View answerI propose to take Questions Nos. 92, 117 and 145 together.
Rent Supplement is administered on my behalf by the community welfare division of the Health Service Executive. The purpose of the rent supplement scheme is to provide short- term income support to eligible tenants living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source.
The tenant makes the application for rent supplement and the Department's relationship is with the tenant in all cases. Payment is made to the tenant, it is the property of the tenant and is specifically for the benefit of the tenant to assist them with their accommodation needs. Approximately 20% of rent supplemented tenants have chosen to have rent supplement paid direct to their landlord. These arrangements are made at the request of the tenant and are usually a simple matter of personal budgetary/income management convenience for the tenant.
The Department is committed to effective co-operation with the Revenue Commissioners, the PRTB and also with the local authorities, in conjunction with the Department of the Environment, Heritage and Local Government. Details of rent supplemented tenancies have for many years been supplied to the Revenue Commissioners, in a format agreed with them, including details of payments made in respect of tenancies where landlords were resident outside the state. Details were also supplied in respect of rent supplement paid directly to non-resident landlords. Tax collection is of course the responsibility of the Revenue Commissioners and my department has no responsibility in this regard. Although the department does not have a facility to withhold tax from rent supplement paid directly to non-resident landlords, the Revenue Commissioners can use the data which we supply to them to check tax compliance in relation to all landlords whose tenancies are rent supplemented.
The Finance Act 2007 obliges the department to collect and supply the Revenue Commissioners with Landlord PPS or other Revenue Reference Number. The Department is endeavouring to find a solution that would allow it to meet these requirements. Issues, including legal and administrative issues, associated with the collection and recording of landlord PPS numbers on the Department's IT systems, are being examined. Liaison continues with the Revenue Commissioners in relation to all of these matters.
The Department supports the requirement that tenancies facilitated by rent supplement should be registered with the PRTB and is working co-operatively with the PRTB to achieve this. To that end my Department provides the PRTB with details of rent supplement payments to enable them identify tenancies that are not registered and take any follow-up action necessary.
I consider that the existing co-operation between the Department and the other government departments and agencies continue to produce positive and effective outcomes which have resulted in better housing solutions for long term rent supplement recipients and supports the local authority in meeting their responsibilities in relation to housing standards. It has also identified key groups of landlords whom both the Revenue Commissioners and PRTB can target with regards compliance with their respective legislation.
