Kathleen Lynch (Cork North Central, Labour)
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Question 48: To ask the Tánaiste and Minister for Finance the steps being taken to ensure that Irish domiciled taxpayers are fully tax compliant for income and capital gains tax earned in respect of foreign properties in their possession, or previously in their possession; if he will supply a revised estimate of the number of Irish resident taxpayers in possession of foreign properties; and if he will make a statement on the matter. [15594/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Revenue is not in a position to estimate the total number of Irish resident taxpayers in possession of foreign properties. As regards ensuring tax compliance by such persons I am advised by Revenue that one of the key objectives of their Offshore Assets Group is to identify Irish residents holding offshore properties in particular where these properties have been funded by undeclared profits or gains. So far, the Group has identified more than 2,000 Irish owners of foreign properties. This has been achieved by using methodologies such as, exchange of information arrangements with other tax administrations; monitoring of advertisements and websites; accessing land registries in other jurisdictions where this is possible and using the information provided by other jurisdictions under the EU Savings Directive.

All of these cases identified are referred for examination to ensure that there is no Irish tax evasion involved either in relation to the source of the purchase money, any income generated from renting the property or any chargeable gain arising from disposal of the property. I gave Revenue additional powers in the Finance Act this year to obtain information from agents who manage properties abroad or receive rents in respect of properties abroad. It is hoped that this will also contribute to the identification of non-payment of tax on foreign property income but the impact of this measure will not be known until the first returns are submitted.