Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I take the point and we can leave the amendments aside for a moment. There is the figure of 4% and the late payment is 8%, so it is usually a once-off when a person has not paid on time or decided not to pay and so on. The problem with the 4% figure is that it continues. It could apply to a person with a very low income, such as a pensioner, but with an expensive house in Dublin. The person could be asset rich and cash poor and have deferred the tax liability. The 4% rate would be applied every year and if the property is sold, the quantum would be paid. It could also be paid if the person gains employment or comes into additional income. That is very different from the late payment rate, as it continues to build and becomes quite substantial. A 4% figure applied to €500 might not be much at €20 but if that is extended to ten years it is €200. However, it is not just for one year and if an individual cannot pay for the second year, there is another €200 over the period and so forth. There can be quite a big liability arising for individuals who simply do not have the ability to pay. A late payment occurs with individuals who have not been permitted by the Department to defer the payment. The people I refer to meet criteria and it is acknowledged that they cannot pay. They are the poorest in society. This penalty is excessive and there is no rationale for it.

The only question should be whether the State is losing money as a result of the deferral and it would not if it were reduced to 1%. The State would benefit more as a result of these low income individuals deferring their payment. That is not justifiable under any grounds. I ask the Minister to consider that point.