Written Answers Nos. 44-50
44. Deputy Pearse Doherty asked the Minister for Finance the amount of revenue, using the latest available data on house prices the local property tax would raise, if it was based on these up-to-date valuations, and ignoring local variations implemented by local councils in the rate. [12249/15]
View answerUnder existing legislation, liability to Local Property Tax (LPT) for the years 2013 to 2016 is based on the (initial) self-assessed valuation of a property on 1st May 2013, assuming it was made in good faith.
This valuation remains valid from 1 May 2013 to 31 October 2016, and will not be affected by any increase or decrease in property prices or other changes, including repairs or improvements made, during this period.
The next valuation date is not until 1 November 2016, and the self assessed valuations on that date will determine property tax liability for the years 2017, 2018 and 2019.
Valuation periods of three years were introduced (with the exception of the first valuation period which covers three and a half years) in order to provide certainty to homeowners as to the liability to LPT and to ease the administration burden by not having to revalue their houses each year.
I have asked Dr Don Thornhill to conduct a review to consider and make recommendations on the operation of the Local Property Tax (LPT) having regard, in particular, to any impacts on LPT liabilities due to property price developments. The review will examine the operation of the Local Property Tax and make recommendations in relation to issues that arise from the review.
The Review will have regard to:
- Recent residential property price developments,
- The overall yield from LPT and its contribution to total tax revenue on an ongoing basis, and
- The desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons.
Recent property price developments will have minimal, if any, impact on LPT liabilities in the period up to the end of 2016. Furthermore, the outcome of the Review will be factored into any policy decisions governing the basis on which LPT liabilities are determined thereafter. I am well aware of concerns arising in relation to LPT liabilities from price developments, particularly in larger urban areas. However, I do not consider that it would be helpful in the circumstances outlined above, to hypothesise on their likely impact in advance of the outcome of the Review and decisions which may be made on foot of any recommendations arising from the Review.
45. Deputy Pearse Doherty asked the Minister for Finance the numbers of properties liable for payment of the local property tax in the year 2015. [12250/15]
View answer46. Deputy Pearse Doherty asked the Minister for Finance the average local property tax payable on an eligible property in the State. [12251/15]
View answer47. Deputy Pearse Doherty asked the Minister for Finance the average local property tax payable on an eligible property in County Dublin. [12252/15]
View answer48. Deputy Pearse Doherty asked the Minister for Finance the average local property tax payable on an eligible property in the 25 counties of the State excluding County Dublin. [12253/15]
View answerI propose to take Questions Nos. 45 to 48, inclusive, together.
I am advised by the Revenue Commissioners that it is tentatively estimated, based on extrapolations from the Central Statistics Office Census 2011 results and information received to date from the administration of LPT, that a total of 1.95 million properties may be liable for Local Property Tax (LPT) in each year. In 2013 and 2014, compliant properties total 1.85 million, a compliance rate of 95%. I am further advised that work is ongoing to validate the expected size of the LPT register and the remaining properties are the subject of ongoing analysis by Revenue. It is expected that these properties will be accounted for over time, through further compliance work by Revenue and as properties are bought and sold.
In relation to the average payments for LPT, I am advised by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT) is available on the Commissioners' website at http://www.revenue.ie/en/about/statistics/lpt-compliance.html. The Commissioners have confirmed that, as shown by the distribution of properties by valuation band, the average or median property nationwide is returned in Band 2 (€100,000 to €150,000). Therefore the average payment in 2014 is €225. Updates to these statistics will be published in April and the possibility of providing a further breakdown of valuations by Local Authorities will be considered in that context. Consideration of average payments in 2015 should also take into account that the Local Adjustment Factor, change to rates set by Local Authorities, will have reduced average payments of LPT.
49. Deputy Pearse Doherty asked the Minister for Finance his views on the European Commission's new proposals regarding the mandatory automatic exchange of information in the field of taxation; and if he will make a statement on the matter. [12281/15]
View answer50. Deputy Pearse Doherty asked the Minister for Finance the number of tax rulings since March 2011, and since 1990, that Ireland has voluntarily shared with the European Commission under existing regulations on the exchange of information in the field of taxation. [12282/15]
View answerI propose to take Questions Nos. 49 and 50 together.
Council Directive 2011/16/EU on administrative cooperation in the field of taxation provides for the exchange of information between the tax authorities of EU Member States and the Regulations (SI 549 of 2012) giving effect to the Directive under Irish law designate the Revenue Commissioners as the competent authority for the purposes of the Directive.
Last week, the European Commission published a proposal to amend the Directive to provide for automatic exchange of information on advance tax rulings for companies in respect of cross-border transactions or activities. Rulings in this regard include opinions or confirmations, on the application of tax law or administrative practice to transactions or activities, which are provided by a Member State's tax authority in advance of the transaction or activity or in advance of the filing of a tax return. Although not referred to by Revenue as rulings, opinions or confirmations providing Revenue's interpretation of the correct application of tax law to cross-border transactions or activities fall within the scope of the Commission proposal. Revenue practice and procedures for providing opinions are set out in published guidelines on the Revenue website at www.revenue.ie.
As a country with an open and transparent tax regime, Ireland is supportive of EU and international efforts to enhance global tax transparency and exchange of information between tax administrations. We will engage constructively in the discussion at EU Council on the Commission's proposal in relation to automatic exchange of information on cross-border tax rulings.
In relation to the voluntary sharing of information between Member States' tax authorities under existing provisions, Article 9 of Council Directive 2011/16/EU provides for spontaneous exchange of information in certain specific circumstances where information is foreseeably relevant to the tax authorities of other Member States. Over the years, Revenue has spontaneously provided information on tax matters to the competent authorities of other Member States and received such information from Member States' competent authorities in accordance with the provisions of the Directive.
While to date information in relation to advance tax opinions has not been provided to, nor received from, other Member States under the spontaneous exchange provision, a framework for operating spontaneous exchange of information in relation to advance cross-border rulings was agreed last year by the EU Code of Conduct Group on Business Taxation, which reports to the ECOFIN Council. Revenue has made administrative arrangements for implementing this framework, the details of which are set out in a recent eBrief published on the Revenue website at Revenue eBrief No. 30/15.
