Brian Hayes (Dublin South West, Fine Gael)
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Question 138: To ask the Minister for Finance the number of cases coming before the Revenue Commissioners in which a solicitor has not paid in full the stamp duty on the transaction of property on behalf of their client, and when in effect the property has never been registered or stamped; the number of cases in which the Law Society of Ireland has paid directly to Revenue the stamp duty as a compensation for the default on the part of the solicitor; if the issue of penalties and interest were applied in these cases where the problem has emerged some years after the sale of the property; and if he will make a statement on the matter. [25832/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the number of transactions coming before them where a professional presenter (the vast majority of whom are solicitors) has not paid the stamp duty in full and where the instrument (the vast majority of which relate to property) has not been stamped amounted to 155 in the first five months in 2009 from a total of 45,117 instruments received for that period.

I am advised by the Revenue Commissioners that, where a solicitor defaults in paying over stamp duty to Revenue and is 'struck off' subsequently as a practising solicitor, the Law Society will appoint a new solicitor to complete the cases of the defaulting solicitor. In such cases, the new solicitor will pay the stamp duty to Revenue and be compensated accordingly by the Law Society. I understand from Revenue that there were approximately 200 such transactions per annum for the three years 2006-2008 inclusive. There are no instances where the Law Society has paid stamp duty directly to Revenue.

On the question of interest and penalties arising from late payment of stamp duty, I am advised by the Revenue Commissioners that all applications for mitigation of interest and penalties are considered on a case by case basis under section 14(3) of the Stamp Duties Consolidation Act 1999. This provides Revenue with discretion to mitigate penalties and interest where, on taking account of all relevant circumstances, not to do so would be unjust and unreasonable. Claims for mitigation must be made in writing and be supported by documentary evidence.

In cases where a taxpayer has, in good faith, paid stamp duty to a solicitor who failed to pay the duty over to Revenue and that solicitor has since been 'struck off' and the practice closed, Revenue gives favourable consideration to mitigating the penalties and interest that would, otherwise, fall to be paid by the taxpayer in order to have the instrument stamped.