Dáil Éireann Debate, Wednesday - 4 March 2015
65. Deputy Timmy Dooley asked the Minister for Finance if hosts of short-term tourist accommodation using online exchange services (details supplied) to rent tourist accommodation are monitored by the relevant authorities to ensure they are tax compliant; and if he will make a statement on the matter. [9553/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that where a person has profit income from the letting of accommodation to, or the hosting of, tourists, the profit is regarded as taxable income which must be included in that person's annual tax return.
Revenue's compliance programmes cover a wide variety of business sectors including the hotel, bed & breakfast and rental sector. Revenue also actively monitor and assess the tax compliance risks from new and emerging business models that are facilitated by the internet and other technologies.
I am further informed by the Revenue Commissioners that they take a risk-based approach to targeting and tackling non-compliance. In that context, their Risk Evaluation Analysis and Profiling (REAP) system is used to cross-check and interrogate over 50 separate data sources to assesses tax compliance risks and identify cases requiring a compliance intervention. In 2013, Revenue gained access to a significant new third party data source comprising returns from merchant acquirers in respect of payments made to merchants for credit and debit card sales (a merchant acquirer is a bank or financial institution that processes credit and debit card payments and transactions on behalf of a merchant). This data is particularly relevant in assisting the Revenue Commissioners to identify on-line traders.
