I propose to take Questions Nos. 110 to 112, inclusive, together.
I assume that the Deputy's questions refer to instances where the lender may have miscalculated and overpaid relief to the mortgage holder and subsequently seeks to recoup the overpayment at a later date.
I am advised by Revenue that section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilings and rates will depend on the particular circumstances of the borrower, and are set out in section 244. Comprehensive guidance notes on mortgage interest relief can be found on the Revenue website using the following link
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-08/index.aspx
Section 244A TCA 1997 provides that tax relief is granted at source by the lender in respect of loans secured by a mortgage on a borrower’s principal private residence. To facilitate this process the lender is required to seek, on periodic basis, updated information from Revenue, which the lender (or their appointed service provider) uses to calculate the correct amount of tax relief due in respect of each qualifying loan.
The lender (or their appointed service provider) then submits a claim to Revenue in relation to the tax relief granted at source by them on all qualifying loans. Before making any payment to the lender Revenue carries out the required verification checks to ensure the payment to the lender represents the correct amount of tax relief due on each qualifying loan. If the lender incorrectly grants too much tax relief at source to a qualifying loan, Revenue will not reimburse the lender for any excess incorrectly granted. Any consequential adjustment to an individual borrower’s liability is a matter for the lender and borrower. As a result many lenders do not show these excess payments to borrowers on their returns to Revenue but instead deal directly with the borrower in relation to them.
On this basis, Revenue does not have a complete record of such overpayments, as they are not overpayments on the Revenue system. Therefore accurate information on the numbers or amounts of such overpayments for the years 2013 to 2017, and to date in 2018, cannot be provided from Revenue data.
The Central Bank has no role in the calculation of mortgage interest relief but has an overall supervisory role over the regulated lenders and service providers.