I am advised by the Revenue Commissioners that they collect PRSI on behalf of the Department of Social Protection. The collection is integrated with the collection of PAYE in the case of employees, and with the self assessment system in the case of other taxpayers. Landlords are expected to include tax USC and PRSI with their annual return of income and pay the appropriate amount. Revenue selects cases for intervention based on the presence of various risk indicators and other information available. This targeted approach is supported by Revenue’s Risk Evaluation Analysis and Profiling System (REAP) which contains considerable information on all self-assessed taxpayers, including taxpayers with rental income.
Projects, specifically aimed at investigating landlords, are regularly undertaken in all Revenue regions with a view to monitoring the rental sector. Such projects may include: Identifying cases where income would appear to be understated vis a vis. properties held; Checking the Forms Rent 1; Following up on rent subsidy payments made by the Department of Social Protection; Student accommodation; Investigations in geographical areas with known high levels of rental properties.
Arising out of these projects, some cases are referred for further investigation and/or for audit. The following table shows the number of audits and the related yield across all tax heads, business and personal, for the NACE code relating to the letting of property, since 2007:
|
Year
|
No. of Audits
|
Yield*
|
|
2007
|
781
|
€48,797,735
|
|
2008
|
669
|
€32,000,926
|
|
2009
|
722
|
€32,177,973
|
|
2010
|
717
|
€36,994,633
|
|
2011
|
908
|
€35,107,472
|
*Yield from all income sources, not just rental income.
While all liability is computed and collected (including Income Tax, PRSI and USC) statistics under each specific heading are not separately available.
I am further advised by the Revenue Commissioners that these figures do not include audits in relation to taxpayers in other sectors where rental income may be a factor.
Full database information from the Private Residential Tenancies Board is available to Revenue to assist in risk analysis and in the determination of the deduction allowable against rental income of interest paid on loans used for the purchase, improvement or repair of residential premises in accordance with Section 97 (2I)(a)&(b) of the Taxes Consolidation Act 1997.
Under Section 891(b) of the Taxes Consolidation Act 1997, all information regarding payments made by local authorities, the Department of Social Protection and the HSE is also available to Revenue for the purpose of data matching and risk analysis.
