Written answers

Tuesday, 5 February 2013

Photo of Tony McLoughlinTony McLoughlin (Sligo-North Leitrim, Fine Gael)
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To ask the Minister for Finance if he will review the decision of the Revenue Commissioners not to reduce a tax interest liability for late payment in respect of a person (details supplied) in County Leitrim. [5431/13]

Photo of Michael NoonanMichael 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. In instances where taxpayers or businesses pay their taxes late then interest on late payment, which is a statutory charge is applied. This is designed to compensate the Exchequer for the loss of revenue suffered as a result of the late payment and to encourage timely payments in future. Revenue applies a balanced approach to the imposition of interest on late payment and ensures that customers are made fully aware that by paying late they risk being charged interest. I am informed by Revenue that the interest on late payment charge in question relates to the 2010 tax year and that the person was obliged under self assessment rules to pay preliminary tax for that year at an amount equal to either 100% of his final 2009 liability or 90% of his eventual 2010 liability on or before 31 October 2010. The person did not make the required payment within the statutory timeframe but did eventually make the payments on a phased basis between 17 November 2011 and 8 February 2012. Because the payments were made well outside of the statutory timeframe the person was charged interest on late payment of €7,701.28.

Unfortunately the person also breached preliminary tax payment rules in 2005 and 2009 and on those occasions suffered interest on late payment charges of €6,320.86 and €1,580.17 respectively. It is also noted that the person has again failed to adhere to preliminary tax rules for 2011 and has paid no preliminary tax for 2012 to date.

The Collector General’s Division of the Revenue Commissioners recently reviewed the application of interest on late payment against the 2010 tax year at the request of the person in question but found no grounds to mitigate the charge given the person’s track record of late payment. However if payment of the debt in one lump sum creates an undue burden on the person, then Revenue would be prepared to consider payment by way of an agreed phased payment plan. Should the person wish to avail of such an arrangement he should urgently contact Mr. Jim Deery, Collector-Generals Office, Limerick, Telephone 061 488753 or email jdeery@revenue.ie to make a suitable arrangement for payment.

Photo of Dominic HanniganDominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance if the Revenue has plans to advise pensioners in advance of letters that may be issued in December advising them of tax that they owe; and if he will make a statement on the matter. [5454/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that they are not in a position to provide a full reply to the question in the time available. However, having received additional information from the Deputy, they will respond directly to him as soon as possible.

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