I propose to take Questions Nos. 212 to 214, inclusive, together.
Regarding Question 45676, the Finance (Local Property Tax) Act 2012 (as amended) provides for a deferral or partial deferral (50%) of LPT where certain specified circumstances exist. These circumstances include ‘Income Level’, ‘Hardship’, ‘Personal Insolvency’ and ‘Personal Representative of a Deceased Person’.
Once granted, a deferral normally remains in place for the duration of the ‘valuation period’, which is currently 1 May 2013 to 31 October 2019. However, property owners can opt to pay the outstanding liability at any time and discontinue with the deferral. Where a deferral is in place, the outstanding liability remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is also charged on the deferred amount at a rate of 4% per annum. There are currently over 59,000 properties with LPT deferrals in place, most of which are in respect of the entire Valuation Period (2013-2019). Table 1 below sets out the numbers and values of properties with deferred liabilities for each year since the commencement of LPT.
Table 1
No of Taxpayers with LPT Deferrals
|
Deferrals
|
Full
|
Partial
|
Total
|
|
Liability Year
|
,000
|
,000
|
,000
|
|
2013
|
30
|
2
|
32
|
|
2014
|
38
|
2
|
40
|
|
2015
|
46
|
2
|
48
|
|
2016
|
55
|
2
|
57
|
|
2017
|
58
|
2
|
60
|
|
2018
|
57
|
2
|
59
|
The accumulated deferral interest amount charged for the entire Valuation Period (2013-2019) is in the region of more than €7m. It is not possible to provide the exact amount of this interest that has been collected to date because some elements are at different points in the collection cycle while other elements are still reflected as charges against the properties in question. However, Revenue is confident that the full amount will be collected over time. I have no plans to abolish the reduced interest rate of 4% on deferred liabilities.
Regarding Question 45677, I am advised by Revenue that there are a range of options available to pay LPT, including the options to pay by deduction at source (DaS). DaS allows a property owner to pay LPT in equal amounts over the year, from either an employment, occupational pension, a Department of Employment Affairs and Social Protection (DEASP) payment, or a Department of Agriculture, Food and the Marine (DAFM) payment. Specific data relating to deductions from occupational pensions is not available as these payments are categorised on Revenue records as deriving from employment. The overall numbers including the total amount collected each year from all DaS sources are set out in Table 2 below.
Table 2
|
Liability Year
|
Number of employees / occupational pensioners on DaS
|
Total Amount of Payments
|
|
|
,000
|
m
|
|
2013
|
87
|
€14
|
|
2014
|
142
|
€55
|
|
2015
|
161
|
€53
|
|
2016
|
176
|
€57
|
|
2017
|
187
|
€60
|
|
2018
|
195
|
€61 (by year end)
|
Regarding Question 45678, I am advised by Revenue that payments made via Service Providers (An Post, Payzone and Omnivend) enables property owners to make either a single LPT payment or to pay on a phased basis over the year. Single payments are due by the LPT deadline in January each year while phased payments can be made on a weekly or monthly basis to suit an individual’s circumstances. The various service providers are commercial operations and levy transaction charges that are outside of Revenue’s control. The amount of LPT collected each year via Service Providers since the commencement of LPT is set out in Table 3 below:
Table 3
|
Liability Year
|
LPT Collected via Service Provider (m)
|
|
2013
|
€21
|
|
2014
|
€44
|
|
2015
|
€44
|
|
2016
|
€44
|
|
2017
|
€47
|
|
2018 To Date
|
€42
|
Finally, property owners who fail to comply with their LPT obligations, regardless of the payment methods selected, may be subject to a range of collection and enforcement options that are provided to Revenue under the Finance (Local Property Tax) Act 2012 (as amended) including:
- Mandatory deduction from employment income, occupational pension or certain Government payments.
- Referral of the outstanding debt to a Sheriff or Solicitor for collection.
- Placing of an Attachment order on a bank account or 3rd party debt owed to the defaulting taxpayer.
- A surcharge on Income Tax, Corporation Tax or Capital Gains Tax Returns.
- Interest charges of 8% per annum applied from the due date to the date of the payment.
- A charge on the property, which must be paid before any sale or transfer of ownership can take place.
- Withholding of Tax Clearance certification.
- Offset of any refunds due in other taxes to outstanding LPT/Household Charge liabilities.
