Written answers

Thursday, 13 November 2014

Department of Finance

Property Taxation Administration

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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74. To ask the Minister for Finance if he will consider the case of a person (details supplied) in County Kildare who is living on a social welfare payment and, following a maximum deduction at source, still has a shortfall of property tax to pay; the way such persons can meet this type of payment; and if he will make a statement on the matter. [43583/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the person to whom the Deputy refers has availed of a 'Partial Deferral' (50%) of Local Property Tax (LPT) in respect of her liabilities for 2013, 2014, 2015 and 2016 and is meeting the balance through deduction at source (DAS) from her Department of Social Protection (DSP) payment. Her entitlement to such a deferral arises from her income threshold level.

However, where such a DAS arrangement takes a person's weekly amount below the 'de minimis' threshold of €186, then deduction of the full liability can not take place. This 'de minimus' 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.  In such circumstances property owners usually avail of one of the other payment options to meet the outstanding balance not covered by the DAS arrangement. From Revenue's analysis of these types of situations it seems that most people prefer to use the Payment Service Provider (PSP) option on a phased basis to meet the shortfall. For the Deputy's information the approved PSP's associated with this option are, An Post, Omnivend, Payzone and Paypoint.   

Given the circumstances of the case, a member of the LPT team has already made contact with the person in question. The LPT team member firstly clarified the concept of Partial Deferral for her, particularly in respect of threshold limits and how it (the amount deferred), including interest at a rate of 4% attaches as a charge to the property. The team member also confirmed that any such charge would have to be satisfied before any future sale or transfer could be completed.

The LPT team member then outlined the various alternative payment options that are available to her in addition to DAS and on the basis of the conversation the person opted to meet the balance of her 2014 liability through a PSP over the remaining weeks of the year. The transaction charges in respect of the various PSP's were also outlined during the conversation.

Finally, Revenue has assured me that the person's LPT obligations are now being fully met and are operating in a manner that suits her individual circumstances.

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