Brian Cowen (Laois-Offaly, Fianna Fail)

On the question of under-claiming by tenants of rent relief, I am advised by the Revenue Commissioners that they have taken a number of initiatives to encourage taxpayers to claim their full entitlements. Extensive advertising took place in 2006 and 2007 covering the most common tax credits, which specifically included rent relief. There was also a targeted advertising campaign in autumn 2007 to encourage the uptake of rent relief. Revenue is including an information leaflet with the 2008 tax credit certificates, which are currently being issued to some 2.2 million PAYE taxpayers. This leaflet gives information on the most common credits available, including rent relief, and encourages the making of claims where due.

As regards reports of under-returning of rental income by landlords, the position is that all taxpayers, including landlords, are obliged to make accurate returns under the self-assessment system and are liable to Revenue audit in the normal way. I am assured by Revenue that the audit of landlords is an ongoing aspect of its work. For example, in 2006, the latest year for which full data are available, audits were concluded in 527 cases where rental income was the main source of income returned. The yield from these cases was €4.7 million in tax, interest and penalties. Cases where rental income is a secondary source are, of course, also included in Revenue audit programmes. Cases are selected for audit on the basis of perceived risk including, in the case of landlords, consideration of information from tenants or third parties where this has been successfully matched.

The Revenue Commissioners are satisfied that this risk-based audit approach, combined with information matching wherever possible, is the appropriate strategy for tackling under-reporting of income by landlords. I also point out that since 2006 relief for interest payable on borrowed money applied in the purchase, improvement or repair of rented residential premises is conditional on compliance with the registration requirements of the Private Residential Tenancies Board. Furthermore, tenants must identify their landlord when claiming rent relief. These measures should help to ensure compliance.

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