Alan Kelly (Labour)

I move recommendation No. 14:

In page 30, before section 24, to insert the following new section:

24.—(1) Section 1041(1) of the Principal Act be amended by inserting the words "in respect of commercial property" in paragraph (a) after the words "Schedule D" and before the word ", or"

(2) Section 1041(1) of the Principal Act to be amended by inserting the words "in respect of commercial property" in paragraph (b) after the words "terms of the lease" and before the words ", but to a person other than the lessor.".".

This proposal is based on information and advice from Threshold. The effect of the recommendation would be to restrict the liability of tenants of commercial property to account for the tax due on rent paid to overseas landlords. Tenants should not have to account for the income tax owed on rent paid to overseas landlords. Tax on such income would be covered by section 1034 of the principal Act which provides for the liability of overseas residents for tax owed on income earned in the State.

We propose that the Revenue should adopt something similar to the non-residential landlord declaration operated by the Inland Revenue in the United Kingdom. This effectively places the bureaucratic burden of compliance not on the tenant but on the non-residential landlord, as it should be.