Dáil Éireann Debate, Tuesday - 12 November 2013
94. Deputy Michael McGrath asked the Minister for Finance if he will arrange for the Revenue Commissioners to cease deducting the local property tax from a person's wages (details supplied) in County Cork as this person qualifies for an exemption as a first-time buyer. [48030/13]
View answerI am advised by Revenue that, in the case to which the Deputy refers, the deduction from wages was not in respect of the person’s primary residence, which is exempt from Local Property Tax (LPT). The person in question was linked to a second property on the basis of records imported by Revenue from another Government agency database during the development of the Property Register. It is now evident that the person was registered with this agency to pay certain charges in relation to the second property but was not in fact the owner. It has since been confirmed that the property belongs to the person's parents and was duplicated on the Property Register.
I am further advised that the LPT Return which issued in March 2013 indicated to the person that he was a multiple property owner. Revenue received no contact from the person disputing the accuracy of his records and a compliance letter subsequently issued on 29 July 2013 in respect of the second property. The letter clearly requested that if he was not the liable owner that he immediately notify Revenue. The letter also advised that “deduction at source” would commence in the absence of a response. Revenue received no response from the person until 20 September 2013 when he telephoned to confirm that he did not own the property and that his parents were the liable persons. Unfortunately an instruction to deduct LPT from his salary had already issued to his employer.
On foot of the person's telephone contact, Revenue amended the Property Register and issued a revised instruction to his employer to cease deductions. The employer subsequently confirmed that deductions had ceased from 1 October. A refund of €50.50 is due to the person and I am assured that it will issue to him in the coming days. Finally, Revenue has acknowledged that the linkage of the second property to the person in question during the development of the Property Register was an error. However Revenue did communicate strongly during the initial stages of LPT that errors in the compilation of the Property Register were inevitable given the scale of the task. Revenue also clearly requested anybody who received incorrect information in regard to their properties to contact the LPT Helpline immediately to avoid unnecessary compliance interventions. Unfortunately in this instance the person delayed making contact and as a consequence compliance activity commenced.
