Tax Code

Dáil Éireann Debate, Tuesday - 12 December 2017

Tuesday, 12 December 2017

Ceisteanna (129)

Michael McGrath

Ceist:

129. Deputy Michael McGrath asked the Minister for Finance the person or body that is the liable party in respect of income tax relating to income being paid to a receiver in the form of rental income on residential and-or commercial property; if the liable person differs depending on whether the borrower has consented to the appointment of the receiver or the receiver has been formally appointed in line with the statutory provisions; and if he will make a statement on the matter. [53088/17]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that section 1049 of the Taxes Consolidation Act (TCA) 1997 sets out that a receiver appointed by a Court in the State which has the direction and control of property is assessed for and charged income tax or corporation tax, as appropriate, on the property as if the property were not under the direction and control of the Court. Such a receiver is answerable for doing all matters required under the Tax Acts for the assessment and payment of income tax or corporation tax, as appropriate.

In cases where the receiver has not been appointed by the Court, section 96(3) of the TCA 1997 provides that tax on net rental income from property in receivership, or from property where the mortgagee has taken possession, is chargeable on the mortgagee. This means that, in these circumstances, the mortgagee, and not the receiver, has to make a return in respect of, and pay the tax liability on, such income.