Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 17:

In page 20, between lines 24 and 25, to insert the following: "Amendment of section 97 of Principal Act

17. Section 97 of the Principal Act is amended by the insertion of the following after subsection (2K):

"(2L) (a) In this subsection

- 'annual service charges' means the expenditure described in section 18 of the Multi-Unit Developments Act 2011;

'commercial unit' has the same meaning as it has in section 1(1) of the Multi-Unit Developments Act 2011;

'multi-unit development' has the same meaning as it has in section 1(1) of the Multi-Unit Developments Act 2011;

'owners' management company' has the same meaning as it has in section 1(1) of the Multi-Unit Developments Act 2011;

'residential unit' has the same meaning as it has in section 1(1) of the Multi-Unit Developments Act 2011;

'unit' means a commercial unit or a residential unit.

(b) A deduction shall not be authorised by subsection (2) in respect of the annual service charges due to an owners’ management company in respect of a unit in a multi-unit development unless the person chargeable can show that:

(i) in respect of a residential unit the registration requirements of Part 7 of the Residential Tenancies Act 2004 have been compiled with in respect of all tenancies which existed in relation to that residential unit in that chargeable period, and

(ii) the annual service charges have been paid to the owners' management company.

(c) For the purposes of subparagraph (i) of paragraph (b), a written communication from the Residential Tenancies Board to the chargeable person confirming the registration of a tenancy, relating to a rented residential premises to which paragraph (a) applies, shall be accepted as evidence that the registration requirement in respect of that tenancy (and that tenancy only) has been complied with.

(d) For the purposes of subparagraph (ii) of paragraph (b), a written communication from the owners’ management company to the chargeable person confirming the payment of the annual service charges relating to a unit to which subparagraph (ii) of paragraph (b) applies, shall be accepted as evidence that the annual service charges have been paid.".".

As this amendment deals with the substance of both amendments, there is no need, as such, to respond specifically to amendment No. 18. In essence, the effect of the amendment is to prevent a tax deduction for annual management charges or fees against rental income, unless a landlord has registered the tenancy with the Residential Tenancies Board, RTB, and paid the management charge to the estate owners' management company. We all agree that having tenancies registered with the RTB is more than desirable and what is expected. It is the law of the land. We also acknowledge that there are very significant problems in many multi-unit developments with maintenance and upkeep. Many management companies are not functioning because of a failure in some cases by owners to pay the required management fees to them. The thrust of the amendment is to see if the Minister is willing to examine the proposal.