I propose to take Questions Nos. 121 and 122 together.
I am advised by the Revenue Commissioners that the sale of new houses by a builder or developer is subject to VAT at the reduced rate of 13.5%. VAT legislation provides that the seller is obliged to remit to the Revenue Commissioners the VAT on the sales, less certain input VAT. Where, at the time of the sale, the houses are under the control of another person, including a receiver, mortgagee in possession or liquidator, then that other person is obliged to remit the VAT on the sales to the Revenue Commissioners.
The legal responsibility for meeting its obligation to account for and pay the VAT rests with the registered business concerned. Any arrangement entered into by the business and any other party in regard to paying VAT is a matter for the business concerned. I, as Minister for Finance, and the Revenue Commissioners have no function in this regard.
With regard to the company referred to by the Deputy, a very significant debt is owed by them to Revenue and collection/recovery efforts by Revenue have been unsuccessful. Having regard to the quantum of the debt and the failure of the company to engage with Revenue towards an agreed approach to payment of the debt, Revenue is now proceeding towards a High Court petition for the appointment of a liquidator on the basis that the company is insolvent.