Written answers

Thursday, 26 June 2014

Department of Finance

Property Taxation Collection

Photo of Clare DalyClare Daly (Dublin North, United Left)
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59. To ask the Minister for Finance the alternatives that are in place for social welfare recipients who are not allowed to have the full amount of property tax deducted from source as the Department of Social Protection has indicated that it cannot bring the rate of payment below €186 per week. [27613/14]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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67. To ask the Minister for Finance the number of persons who have opted to pay their local property tax by means of a deduction from their social welfare payment; the number of instances where the maximum deduction allowable did not cover the full liability and resulted in a shortfall at the end of the year; and if he will make a statement on the matter. [27777/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 59 and 67 together.

I am advised by Revenue that there is ongoing dialogue with the Department of Social Protection (DSP) to ensure the deduction at source payment option in respect of Local Property Tax (LPT) and arrears of Household Charge (HHC) operates as smoothly as possible. The situation referred to in Question [27613] could arise where a weekly LPT/HHC deduction from a property owner's DSP payment reduces the remaining amount below the weekly 'de minimis' of €186. The concept of a DSP 'de minimis' amount is enshrined in Social Welfare legislation and it was considered at the time of the introduction of LPT that it was not appropriate to change the law in this regard.

Given the rates of DSP payments, it is very important that recipients are aware that the LPT legislation provides for full and partial (50%) deferrals of the tax within certain specified thresholds. For example, a property owner can claim a full deferral where his/her gross income does not exceed €15,000 if single/ widowed or, €25,000 in the case of a couple. To qualify for a partial deferral, the property owner's gross income must not exceed €25,000 if single/widowed or, €35,000 in the case of a couple. These income threshold limits can also be adjusted upwards by including 80% of any gross mortgage interest payments. The interest element of any such deferral or partial deferral is 4% as distinct from the normal 8% charge that applies in respect of compliance activity.

I am assured that the application process for deferral and partial deferral is a simple matter and can be done through the online system at or by contacting the LPT Helpline at 1890 200 255. In most circumstances where a deferral or partial deferral is granted, it remains in place for the current valuation period, i.e. for the tax years 2013, 2014, 2015 and 2016.    

Where deferral or partial deferral is not applicable, property owners who wish to pay their LPT/HHC liabilities on a phased basis over the course of the year have a number of different payment options available to them, including deduction at source from DSP payments. Where the DSP deduction at source option does not facilitate an even spread of payments over the year due to the €186 threshold, property owners can avail of monthly direct debits through their financial institution or certain credit union accounts. Alternatively they can make regular weekly or monthly payments to one of the four approved payment service providers, which are An Post, Payzone, PayPoint and Omnivend. Details in regard to the payment service providers including information on the various transaction fees are available on the Revenue website at .

Revenue has further advised me that where a property owner already availing of deduction at source from a DSP scheme in respect of LPT/HHC liabilities discovers that it is not possible to meet the full amount before the end of the particular year on foot of the €186 threshold, they should immediately contact the LPT Branch helpline at 1890 200 255 to make additional payment arrangements or to avail of the deferral option.

Revenue has confirmed to me that almost 14,000 property owners availed of deduction at source from DSP payments to meet their LPT liabilities during 2013. Shortfalls in payment on foot of the €186 threshold occurred in 1,203 of these cases, of which 200 were for less than €10. Revenue contacted this tranche of property owners in April 2014 to advise on the various payment alternatives available.

The number of property owners opting for deduction at source from DSP payments in respect of both 2014 LPT and arrears of HHC has risen to almost 25,000 to date. Similarly to 2013, Revenue has identified and contacted almost 2,000 of these cases which are impacted by the €186 threshold to advise on the various payment alternatives and in most cases the shortfalls are being catered for by applying an additional payment option that suits individual circumstances best.

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