Dáil Éireann Debate, Wednesday - 25 September 2013
77. Deputy Catherine Murphy asked the Minister for Finance the financial penalties that will be applied to persons who do not register to pay the local property tax on time; and if he will make a statement on the matter. [40071/13]
View answerSection 146 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a monetary penalty where a liable person fails to deliver a Return to the Revenue Commissioners. The penalty chargeable is equivalent to the Local Property Tax (LPT) that is payable, subject to a maximum of €3,000. Section 149 of the 2012 Act (as amended) provides for the charging of interest on late payment of LPT at a daily rate of 0.0219%, an annual rate of just under 8%.
As the Deputy may be aware, the Revenue Commissioners have been contacting property owners who did not file an LPT Return to give them a final opportunity to comply. In the absence of a response, Revenue, in accordance with legislation, has begun to deduct the Revenue Estimated amount of LPT at source from salaries and occupational pensions on a mandatory basis and, in these circumstances, interest does not arise.
Self-assessed taxpayers have likewise been reminded that, if they do not comply, they will not receive a tax clearance certificate and face a surcharge on their forthcoming income tax return.
Revenue’s priority this year has been to establish the tax and secure the yield for the Exchequer. In due course, notwithstanding the fact that the estimated tax has been secured, Revenue will initiate a compliance campaign for outstanding LPT Returns and will challenge a proportion of returns on a risk basis, at which stage penalties and interest under Sections 146 and 149 of the 2012 Act (as amended) may arise.
I am satisfied that the approach adopted by the Revenue Commissioners to LPT non-compliance is appropriate to ensure the highest possible level of LPT compliance while optimising the use of the Commissioners’ resources.
