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

I hear the case that is being put forward by Deputy Matthews that the penalty we have been discussing should be increased to €10,000. I will make the same general point back to the Deputy: just as he might wish that the rate should be higher, I believe the tripling of it, as we have at the moment, is capable of making a difference. The same difference exists in respect of the charge of €3,000. A penalty of €3,000 is something that will make homeowners think twice. The Deputy believes it should be increased all the way up to €10,000 for somebody who is failing to keep any returns at all in respect of a property. A fine of €10,000 for such behaviour feels to me like a very significant charge. As with all of this, we will keep it under review and see if these kinds of penalties are having the effect we want them to have. My assessment at the moment is that €3,000, in itself, is something that is capable of leading to the behavioural change we want.

The Deputy spoke about the exemption when a property is being sold. This exemption reflects the fact that properties may be temporarily vacant while on the market for sale. Applying a tax in these situations is not aligned with the aim of the vacant home tax. The amendment would limit to just six months the period of time that a property could be on the market for sale without becoming liable for the vacant homes tax. This would mean that a property owner who puts a property on the market for two months would retain the exemption but someone who had been trying to do so for longer than six months would not. This risks the creation of an incentive that the provisions of section 84 are designed to avoid, which would be to create inequity for those genuinely trying to sell a property who might not yet have found a buyer for genuine reasons. For those reasons, the amendment the Deputy is proposing, which I understand in any event has been disallowed, would have the desired effect.