Eugene Regan (Fine Gael)

Will the Minister of State clarify the provisions in stamp duty legislation? I understand they do not provide for Revenue to accommodate a phased payment system for individual taxpayers who have a liability but who due to economic difficulties cannot make the repayment on a lump sum basis. Revenue provides such an accommodation in other areas of taxation for taxpayers who get into difficulty. The standard response on stamp duty is there is no provision within existing legislation to permit staged payments.

Revenue issued a circular in December 2008 entitled, Case Decision Escalation Framework, which stated the Commissioners would be understanding and accommodating regarding taxpayers who get into particular financial difficulties and they could work with them once the taxpayer was open and forthcoming on his or her position. It stated, "Revenue is disposed to working with such businesses and taxpayers to find a way through these difficulties provided there is a positive and honest engagement with Revenue and the fundamentals of the underlying business are sound". The circular refers to individual taxpayers in recent times experiencing particular difficulties meeting their tax payment obligations and states, "The Collector General has decided that some additional considerations to those that normally or generally apply may arise in determining how Revenue will respond in these type of situations" and reference is made to the case decision escalation framework procedure.

I am aware of a number of cases of individuals in difficulty such as one first-time buyer owing stamp duty. He did not occupy the property because he lost his job and had to emigrate and find work abroad. There is a willingness on the part of Revenue in most cases to accommodate individuals who encounter problems meeting their tax liabilities and where Revenue recognises the cases are bona fide, the taxpayer is given time to make phased or staged payments and the matter is resolved. However, no such provision relates to stamp duty and staged payments are not permitted.