Dáil Éireann Debate, Tuesday - 10 October 2023
113. Deputy Pearse Doherty asked the Minister for Finance what measures have been implemented to allow for the investigation of properties which may be liable for the vacant home tax; and if he will make a statement on the matter. [43745/23]
View answerVacant Homes Tax (VHT) is administered by Revenue in accordance with Part 22B of the Taxes Consolidation Act 1997 (TCA 1997). The first chargeable period for VHT is 1 November 2022 to 31 October 2023. A residential property will be within the scope of VHT if it has been occupied as a dwelling for less than 30 days in a chargeable period. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024.
A preliminary property register, developed by Revenue with data drawn from a range of sources including GeoDirectory, the Residential Tenancies Board and ESB Networks, has identified an initial subset of residential properties which may come within scope of VHT. This preliminary register is being used to issue correspondence to 25,000 property owners who are identified as being potentially liable for VHT to advise them of their obligations. Revenue may contact additional property owners at a later date following further data analysis.
Property owners who receive such correspondence are required to confirm their property’s occupation status by 7 November 2023, thereby determining their liability to VHT. Property owners are required to self-assess their liability to VHT and submit a return if they determine that VHT applies to their property, even if they do not receive correspondence from Revenue.
Where property owners fail to meet their VHT obligations, Part 22B of the TCA 1997 contains a number of provisions designed to encourage compliance with VHT and address non-compliance. Under VHT legislation, Revenue has powers to require a chargeable person to file a VHT return, make enquiries, raise Revenue assessments and amended Revenue assessments, and request that chargeable persons provide certain records.
Section 653BB of the Act provides that Revenue may issue a notice to a chargeable person, requiring them to provide records to demonstrate that their property was in use as a dwelling for 30 days or more in a chargeable period. Where such records are not provided, or where the records provided are insufficient, Revenue may deem the property to be vacant for the purposes of VHT. A chargeable person must keep appropriate records relating to relevant properties. Records are required to be kept for VHT purposes for 6 years from the end of the year in which the chargeable period ends or until the completion of any enquiries made by Revenue.
Furthermore, Section 653BF provides for a surcharge to be imposed where a chargeable person fails to file a correct VHT return by the deadline of 7 November 2023. A surcharge of 5% of the VHT payable will be imposed, where a late return is filed within 2 months of the filing deadline. The surcharge increases to 10% where the return is filed more than two months after the filing deadline. Section 653BG provides that Revenue may also apply a penalty, where the chargeable person fails to file a correct return by the due date. Section 653BE of the Act further provides for interest to be charged on late payment of VHT, at a rate of 0.0219% per day.
As with all tax and duty obligations Revenue’s approach is to seek to maximise voluntary compliance. Revenue has provided detailed information regarding VHT on its website at: www.revenue.ie/en/property/vacant-homes-tax/index.aspx.
Revenue has also published a VHT Tax and Duty Manual (TDM) which provides further detailed guidance on the tax. This is available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-22b/22b-01-01.pdf.
In addition, Revenue provides comprehensive online services, as well as a designated Helpline (01 738 3626) to assist property owners in meeting their VHT obligations.
