Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the number of persons tasked with the job of dealing with appeals that will go forward from persons disputing the amount of money being sought from them in property tax; where they will be based and the type of resources available to them; and if he will make a statement on the matter. [14967/13]

Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if a house owner is disputing the amount of money being sought in the property tax will they first of all have to pay the full amount and then put forward an appeal on that decision; and if he will make a statement on the matter. [14993/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 203 and 205 together.

Local Property Tax (LPT) is a self-assessed tax so in the first instance it is a matter for the liable person to determine the valuation band that their residential property falls into and then to calculate and pay over the amount of tax due. I am advised by the Revenue Commissioners that, in common with the procedures for other taxes, they will accept the self-assessment made by the liable person provided it is made honestly and reasonably. In cases, therefore, where the liable person has made their best efforts at self-assessing the valuation band for their property and has submitted their Return and paid, or made arrangements to pay, the tax, the likelihood of disputes arising would be expected to be very low.

The Deputy refers in his Questions to persons disputing the amount of money being sought from them in property tax. This may be a reference to the Notice of Revenue Estimate that is being sent by Revenue to all liable persons as part of the general issue of LPT Returns that recently commenced. I am advised by the Revenue Commissioners that the question of appealing the Estimate does not arise. The Revenue Estimate is not based on a valuation of individual properties, nor should it be regarded as an accurate calculation of the amount of LPT that a liable person should pay. The Revenue Estimate is an amount of LPT that will be pursued if a liable person does not submit his or her LPT Return with his or her self-assessment of their property's valuation band. Accordingly, a person does not appeal the estimate – he/she displaces it by completing the return, self-assessing the value and filing the return. It is very simple, there is nothing to appeal - just file the return with the person’s own assessment of the LPT due and arrange to pay it.

Because LPT is a self-assessed tax, the likelihood of formal appeals arising should not be high. A common feature of a self-assessment system is that return is filed which is generally accepted by Revenue. A number of returns are reviewed at a later date by Revenue and supporting documentation may be requested. At the end of a review, if there isn't agreement, Revenue may raise an assessment which the taxpayer may then appeal.

In the context of LPT, Revenue has stated that their concern this year is to establish the register and to get the tax up and running. At a later date, they will analyse the returns received and will review a proportion of those returns. Their likely approach will be to ask a property owner to validate his/her self-assessment. Depending on the outcome of the review and in a minority of cases where agreement is not reached, Revenue will raise an assessment of additional LPT due. This may be appealed to the Appeal Commissioners. As with other self-assessed taxes, one of the conditions to appeal Revenue's assessment is that the person must submit a Return and pay his or her own assessment of the tax due - not Revenue’s assessed amount - within 30 days of the date of the Notice of Assessment.

Finally, the determination of all tax appeals is the responsibility of the Office of the Appeal Commissioners - an Office under the aegis of my Department, entirely separate from the Office of the Revenue Commissioners. There are currently two Appeal Commissioners who are completely independent in carrying out their statutory role. The extent to which the introduction of the LPT will impact on the work of the Appeal Commissioners cannot be accurately predicted at this stage. While I do not anticipate that the number of appeals on LPT matters to be considered by the Appeal Commissioners will be substantial, I will keep the matter under review and regard will be had to the issue in the context of a wider review of the appeals process which should commence shortly.