Dáil Éireann Debate, Tuesday - 13 June 2023
706. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the reason that the Revenue Commissioners automatically rescinds a landlord's tax clearance certificate once the amount paid to the landlord through HAP exceeds €10,000; if consideration can be given to amending this policy by increasing the threshold at which tax clearance certificates are rescinded; and if he will make a statement on the matter. [27603/23]
View answerThe Housing Assistance Payment (HAP) is designed to support eligible households immediately and to remove barriers to the commencement of HAP support. Landlords, therefore, are asked to self-certify that they are tax compliant and that their property is in such a lettable condition that it meets the statutory requirements for rented accommodation as part of the HAP application process. Landlords are also informed and agree that the data they have supplied on the HAP Application Form will be shared with other public bodies, including the Revenue Commissioners, for the purpose of the prevention or detection of fraud.
Limerick City and County Council provide a highly effective HAP transactional shared service on behalf of all local authorities. The HAP Shared Services Centre (HAP SSC) manages all HAP related rental transactions for the tenant, local authority and landlord. The HAP SSC also manages the tax compliance element of the scheme on behalf of the relevant local authorities. Accordingly, the HAP SSC must follow the tax compliance requirements set down in the provisions of the scheme and the general tax requirements of all public bodies as provided for in Department of Finance Circular 44/2006: Tax Clearance Procedures - Grants, Subsidies and Similar Type Payments. Part 4 of the Housing (Miscellaneous Provisions) Act 2014 provides for the HAP scheme and contains the statutory provisions for the payment of HAP to a landlord by a housing authority for the rent of qualifying households. Section 39 provides for the payment of housing assistance in respect of qualified households and sets out the principal features of the scheme, including that the landlord must comply with the conditions set out in section 42, including demonstrating tax compliance. Under section 42(2) of the 2014 Act the landlord must be tax compliant. It is therefore a statutory requirement that a landlord must give a PPSN or tax reference and a current tax clearance certificate or evidence of tax compliance. In this regard, individuals receiving rental income, including HAP payments, should contact Revenue to ensure that they are tax compliant and/ or to apply for tax clearance. Separate requirements are provided for under Department of Finance Circular 44/2006: Tax Clearance Procedures - Grants, Subsidies and Similar Type Payments. If someone receives grants, subsidies or similar type payments from a government department or public authority of more than €10,000 during the year, they will need a Tax Clearance Certificate. While the HAP SSC will continue to seek evidence of tax compliance from a landlord, they cannot pay them after the €10,000 threshold has been reached. The HAP SSC works with landlords on a daily basis to assist them in meeting their requirements under the scheme, including in relation to tax compliance.
