Michelle Mulherin (Mayo, Fine Gael)
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To ask the Minister for Finance if he will direct the Revenue Commissioners to change their policy of requiring a 40 percent down payment of tax from a tax payer in advance of agreeing to accept payment of the tax payer's tax liability by instalments in view of the increasing number of publicans who are not in a position to get their tax clearance certificate in order to renew their intoxicating liquor licences as they can not come up with the 40 percent tranche in one payment and are unable to get a loan from the banks and are now faced with the shut down of their businesses; and if he will make a statement on the matter. [54380/12]

Michael Noonan (Limerick City, Fine Gael)
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The Revenue Commissioners are charged with responsibility for the timely collection and recovery of a range of taxes and duties due to the Exchequer. Revenue has a clear focus on making sure that every person and business complies with the requirement to file the relevant returns and to pay the appropriate tax or duty on a timely basis. That is an appropriate and correct focus for Revenue and one that I fully endorse. Delays in the collection of tax revenues properly due, adds to the level of Government borrowing and public debt interest and confers an unfair competitive advantage on non-compliant businesses.

I am advised by Revenue that tax clearance certificates automatically issue to individuals or businesses that are tax compliant. In circumstances where there are compliance problems in regard to the timely payment of tax then tax clearance certificates are not automatically renewed. In cases where payment of a tax debt in a single lump sum is demonstrably not possible for an individual or business and a tax clearance certificate is required, then the individual or business should contact Revenue and negotiate a mutually acceptable phased payment arrangement. A phased payment arrangement is a concession and must be fully justified to Revenue with reference to the specific circumstances of the individual taxpayer or business. In such phased payment situations where tax clearance is required, a down payment of at least 40% of the debt is normally requested. However, I am informed by Revenue that this level of down payment can be reduced on a case by case basis depending on the particular circumstances of the case and the willingness of the taxpayer or business to engage with Revenue to satisfactorily address the outstanding tax debt and to restore timely compliance as quickly as possible.

I know that Revenue is conscious of the difficult economic and financial climate that prevails and how this can pose challenges for businesses and individuals in being timely compliant. Revenue has responded to the difficult environment by encouraging businesses experiencing particular payment difficulties to work proactively with them when such difficulties start to arise in order to find an agreed way through those difficulties and quickly restore voluntary timely compliance. Revenue has, for example, published material for businesses experiencing tax payment difficulties on its website at www.revenue.ie. I commend Revenue for the work that it has done in that regard and in the practical support and assistance it is providing to viable businesses. I am aware that tax practitioners and representative bodies have recognised Revenue’s efforts in this regard also.

Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Finance his plans to abolish stamp duty in event of a property tax being introduced; and if he will make a statement on the matter. [54402/12]

Michael Noonan (Limerick City, Fine Gael)
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The Government has no plans to abolish Stamp Duty on transfers of residential property. Stamp Duty on property transactions co-existed with domestic rates before their abolition in 1978; and in many jurisdictions (including those with similar legal systems, such as the UK and the USA, and those with similar sized property markets, such as Denmark and the Netherlands) an annual residence related charge co-exists with a transactions-based tax which operates in a similar manner to Stamp Duty. The Deputy will note that the rate of Stamp Duty on the vast majority of residential properties is 1% compared to a rate of 9% as recently as 2010.