Written answers

Tuesday, 28 June 2005

10:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 303: To ask the Minister for Finance the amount which has been collected from householders in each year since 1997 under the former residential property tax; if any householder may still face a liability in respect of periods prior to the abolition of RPT due to non-payment or underpayment; the extent of any such liabilities; if such liabilities are a charge on the property of householders until cleared; if any interest and surcharges have been applied in respect of any outstanding liabilities; and if he will make a statement on the matter. [22177/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the net receipt of residential property tax for each year since 1997 is as follows:

Yearâ'¬m
1997 3.95
1998 1.83
1999 1.77
2000 2.02
2001 1.65
2002 0.83
2003 0.40
2004 0.38

Residential property tax, RPT, was abolished with effect from 5 April 1997. However, any person who had a liability to RPT prior to its abolition in 1997 has an obligation to discharge that liability, including the payment of interest.

A liability to RPT is not a charge on a property, except where a person — transferor — transfers a residential property to his or her spouse. In such cases, where a transferor transfers a residential property to his or her spouse, any tax and interest due and outstanding on the date of such transfer shall be and remain, for 12 years from that date, a first charge on that property.

Where a property is sold for a consideration in excess of the RPT threshold the vendor must furnish an RPT clearance certificate to the purchaser to certify that the vendor does not have an outstanding RPT liability. The value threshold for this purpose is €1,300,000 and applies to house sale contracts on or after 5 April 2005. Where the vendor fails to furnish the purchaser with an RPT clearance the purchaser must deduct a specified amount from the sale consideration and remit the specified amount to the Revenue Commissioners. The specified amount is calculated by deducting the amount of the RPT threshold from the sale consideration and multiplying the answer by 1.5%.

Where a person requests a clearance certificate from Revenue and has not previously paid RPT, Revenue will issue a multi-year return form to that person, and the form must be returned to Revenue with payment of any outstanding tax and interest. Where a person has paid RPT previously and requests a clearance certificate from Revenue, and Revenue consider that the RPT has been underpaid for any year(s), an assessment will issue for the amount of the underpayment.

Interest has been applied to late payments of RPT, however, surcharges do not apply to outstanding RPT liabilities.

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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Question 304: To ask the Minister for Finance the receipts accruing to the Exchequer in 2002, 2003 and 2004 from VAT receipts on house purchases; the likely revenues lost if the VAT rate had remained unchanged; and if he will make a statement on the matter. [22178/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the amount of VAT collected from house purchases cannot be identified in the overall yield of VAT as the information furnished on VAT returns does not require this to be identified. However, based on data published by the Department of the Environment, Heritage and Local Government, the VAT yield from the sale of new houses, including apartments, is estimated as €1,100 million in 2002, €1,541 million in 2003 and €1,999 million in 2004.

The reduced VAT rate of 12.5% was increased to 13.5% on 1 January 2003. Had the reduced VAT rate remained unchanged it is estimated that the VAT yield would have been €96 million less in 2003 and €148 million less in 2004. The estimated increase in the overall VAT yield from all sectors to the Exchequer arising from the increase in the reduced rate was €239 million in 2003 and €330 million in 2004. This is, therefore, an important source of funding for public services.

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