Michael Healy-Rae (Kerry South, Independent)
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51. To ask the Minister for Finance his views on correspondence (details supplied) regarding the payment of property tax; and if he will make a statement on the matter. [42929/13]

Michael Healy-Rae (Kerry South, Independent)
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61. To ask the Minister for Finance the position regarding deductions for property tax in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [42927/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 51 and 61 together.

In response to Question No. [42929], I am advised by Revenue that the anomaly to which the Deputy refers only arises in a very small number of cases where the PPS numbers are formatted in an old style that is incompatible with the current IT systems. Generally speaking the PPS numbers concerned are those that were historically assigned to a female spouse on marriage by adding the letter 'W' to her husband's PPS number, and were not actively in use for tax purposes. The issue does not affect 'W' numbers that were active for tax purposes.

The deduction at source payment method for Local Property Tax (LPT), which commenced in July 2013, operates by Revenue advising the Department of Social Protection of the individual deductions via electronic file transfer. The individual case data is transferred between the Revenue and DSP computer systems and is downloaded exactly as provided by the taxpayer. Revenue cannot validate the accuracy of the information provided, including the status of the PPS number quoted, in advance of the electronic file transfer. A problem is identified only when a transaction fails, in which case the Department of Social Protection notifies Revenue, which in turn makes contact with the taxpayer.

I note the Deputy's suggestion that Revenue should make reference on the LPT Return to the possibility of old style PPS numbers being invalid. While this is not possible for 2013 and 2014, Revenue will consider it in the future, having regard to the scale of the problem. In the meantime the LPT Frequently Asked Questions will be updated on the Revenue website with information and clarification on the issue.

On the specific case outlined by the Deputy in Question No. [42927], I am informed by the Revenue Commissioners that the person in question selected a number of different payment options when completing the LPT Return. This delayed the initial processing of the Return while the LPT team attempted to clarify with her which option she preferred. Unfortunately, Revenue was not aware that the person's spouse was recently deceased and arranged deduction at source from a Department of Social Protection pension, using the PPS number quoted, leading to the problem outlined above. In the intervening period, and prior to Revenue making contact with the person, a family member contacted LPT Branch and indicated that the person wanted to change her payment method to a service provider. The LPT team member immediately set up the new payment method as requested.

As the Deputy will appreciate, notwithstanding the delays in setting up a satisfactory payment option, the onus is still on the person to ensure the full LPT liability for 2013 is paid by 31 December 2013. However, I note the Deputy's comments in regard to her ability to pay the outstanding liability. The Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral and partial deferral arrangements for owner-occupiers where there is an inability to pay the tax. I am advised by Revenue that the person in question, on the basis of the information supplied, appears to qualify for both deferral and partial deferral and Revenue will contact her shortly to establish whether she wishes to avail of either option.

I offer my sympathy to the person concerned on her recent bereavement.