Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We debated this issue during consideration of the Finance Act 2019 and went through the detail of the matter. I am not in a position to accept the amendment. I will outline the reasons I differ with the Deputy in respect of this policy. I will send him a note between now and Report Stage in which I will outline why his rationale for advocating this amendment is not one I can support.

The core issue here is that Deputy Doherty appears to be suggesting that where management fees are not paid, none of the deductions under section 97 of the Taxes Consolidation Act should be allowed. I do not agree. Although I accept that there are difficulties with the non-payment of management fees in some developments - I am familiar with such issues - I do not agree that changing the rules of tax deductibility would solve the problem. It would not address the non-payment of management fees by owner-occupiers and it does not seem fair to link the allowability of all expenses to the payment of one of them. Property owners may be in dispute with management companies for a variety of reasons, such as the non-provision of services under a management agreement. I am not convinced that the tax system is the best place for or is best suited to resolving these kinds of contractual disputes.

That is the core of the reason I would not support the policy change the Deputy is advocating. I have a fair bit of material regarding the various matters he has raised, and I will send it on to him with a note before Report Stage to see whether it changes his view on the matter.