Eoghan Murphy (Dublin South East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

61. To ask the Minister for Finance further to Parliamentary Question No. 106 of 12 November 2013, if he intends to make property tax paid in respect of a rented property deductible for income tax or corporation tax purposes. [52337/13]

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

As advised in my reply to Parliamentary Question No. 106 of 12 November 2013, the inter-departmental group, chaired by Dr. Don Thornhill, set up to consider the design of a property tax (the “Thornhill Group”) recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates.

The group recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue, and, for this reason, suggested that consideration be given to phasing in deductibility over a period of years. The group also considered that it was for Government, having regard to the prevailing budgetary situation, to decide on the time span for phasing-in deductibility and on what percentage of LPT to allow as a deduction from gross rents for tax purposes.

The Government accepted the recommendation of the Thornhill Group in principle, but has not considered the manner or the timing in which this will happen.