Joan Burton (Dublin West, Labour)

I move amendment No. 14:

In page 13, between lines 15 and 16, to insert the following:

"4.—Where a person avails of tax relief relating to income including or consisting of rental income pursuant to the Principal Act, he or she shall furnish to the Commissioners sufficient information to demonstrate that he or she has complied with any requirement of the law regarding registration as a landlord."

The purpose of these amendments is to provide a degree of accountability and transparency in tax relief schemes, who benefits from them and what is involved. We are legitimately entitled to know if tax breaks are justified and equitable to the broader public interest. This amendment concerns tax relief on rental income for landlords. There is widespread concern that some landlords and property owners, availing of such tax breaks, are not in compliance with registration requirements with the residential tenancies board or local authorities.

Landlords renting to private tenants is a fraught area. The Government has moved away from investing in social housing. The burden of this has fallen on the private rental sector, supported by rent allowances paid by community welfare officers and the Department of Social and Family Affairs. However, there is no knowledge of how many landlords are tax compliant or registered with the residential tenancies boards. This simple amendment will close this loop, requiring landlords availing of this tax relief to be properly registered and in compliance with other legal requirements. They are asked to register with the board — formerly with local authorities — to try to ensure issues such as a fair deal for the tenant quality accommodation and that basic fire and safety regulations are dealt with. If landlords operate in residential areas, they must have some sense of social responsibility to the wider community in respect of simple things such as the property being maintained and painted and the area around the property being cleaned regularly so it does not become a nuisance.

Average rents here are very high as is the average subsidy paid by community welfare officers in respect of rental properties. This costs the State a packet. On the one hand, we subsidise tax breaks for people investing in property and becoming landlords and on the other, we pay many of them rent through the community welfare officer schemes. The State is paying on the double through tax breaks and rent subsidy.

This is an entirely reasonable amendment that would bring some level of assurance to compliant taxpayers who do not usually take advantage of tax breaks that these landlords comply with registration requirements. The Minister should adopt a reasonable approach so this type of issue is sorted out.

See this speech in context