Dáil Éireann Debate, Wednesday - 17 September 2014
253. Deputy Pearse Doherty asked the Minister for Finance the way the apportionment exercise to determine the price of a property for stamp duty purposes in mixed sales is carried out, monitored and verified; and if he will make a statement on the matter. [34163/14]
View answerI am informed by the Revenue Commissioners that the Stamp Duties Consolidation Act 1999 ("the Act") contains specific provisions governing the apportionment of the overall consideration in mixed sales as between residential and non-residential parts of properties for the purposes of determining the appropriate rate of stamp duty to be applied. These provisions are contained in Section 45 and Schedule 1 to the Act. Essentially, the Act requires that the overall consideration in mixed sales is to be apportioned by reference to the value of the residential and the value of the non-residential parts of properties on a basis that is just and reasonable by reference to the facts.
Stamp Duty is a self assessment tax. Accordingly, it is the responsibility of the taxpayer in the first instance when making a stamp duty return to apply the appropriate apportionment on a just and reasonable basis in accordance with the requirements of the Act.
The Revenue Commissioners monitor tax compliance by taxpayers generally in accordance with their compliance programmes. Cases are selected for compliance checks in accordance with various risk criteria applied by Revenue. Where they consider that a taxpayer has not made a just and reasonable apportionment of consideration as between the residential part and the non-residential part of a mixed property, they will examine the facts (where necessary, obtaining an opinion from a valuer) in relation to the reasonableness of the taxpayer's apportionment. Where it is considered that a taxpayer's apportionment is not acceptable, they will correspond with the taxpayer with a view to reaching agreement on the correct apportionment. If agreement cannot be reached, Revenue may amend a taxpayer's assessment to reflect the correct apportionment. A taxpayer may appeal any such amended assessment if he or she disagrees with it.
