Sandra McLellan (Cork East, Sinn Fein)
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To ask the Minister for Finance if persons on pensions who cannot afford to pay the tax long term and opt to defer it are subject to an additional 8% annual charge or a 4% charge; and if he will make a statement on the matter. [11736/13]

Sandra McLellan (Cork East, Sinn Fein)
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To ask the Minister for Finance with regards to the local property tax, if he will take the money at source from those who cannot or will not pay or will they add 8% onto the tax annually until it is paid; and if he will make a statement on the matter. [11737/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 59 and 60 together.

In line with all other taxes, the Finance (Local Property Tax) Act 2012 provides for the charging of interest on overdue taxes at annual rate of 8% or 0.0219% per day, the same as the rate chargeable in relation to overdue income or capital gains taxes. The legislation provides for the possibility of full or partial deferral in certain defined circumstances to qualified liable persons, and in such circumstances, the interest is 4% per annum. The deferred amount, including interest, will attach to the property and will have to be paid before the property is sold or transferred. Details of the deferral arrangements are available on Revenue's website www.revenue.ie, where the Revenue Commissioners have recently published a useful Guide to Local Property Tax.

I am informed by the Revenue Commissioners that, for those who do not qualify for deferral of the tax, there is a wide range of payment options available to liable persons, which will allow them to pay their LPT liability in full or to pay the tax in equal instalments beginning in July 2013 by direct debit or by deduction at source from employment income, occupational pension or certain payments for the Department of Social Protection or the Department of Agriculture, Food and the Marine. In these circumstances, no interest will be charged.

I am satisfied that Revenue will make it as easy as possible for people to comply with their obligations and facilitate the vast majority of liable persons who, I believe, will wish to pay their LPT charge. However, for those residential property owners who are not prepared to pay, I am advised by the Revenue Commissioners that, in the interests of fairness and equity to the compliant taxpayer who pays their LPT, follow-up action will be taken to recover the tax from those liable persons as soon as possible. Revenue will pursue payment of the Revenue Estimate, which is an estimate of the LPT due and applies where the liable person has failed to submit their LPT Return, including by way of mandatory deduction from 1 July 2013 from the liable person's employment income, occupational pension or certain Government payments. In such circumstances, payment of interest will not arise assuming no additional liability arises.