Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

132. To ask the Minister for Finance the number of persons who have been subject to each of the following sanctions in respect of the household charge for 2012; mandatory deduction at source from salary or occupational pension; surcharge on income tax, corporation tax or capital gains tax returns; referral to the sheriff for collection; referral to the Revenue Commissioners' solicitors for collection through the courts; attachment of financial institution accounts held by the defaulting taxpayer; offset of household charge of any refunds due to the defaulting taxpayer across any other taxes; refusal of tax clearance certification; and interest penalty on late payments; and if he will make a statement on the matter. [5377/15]

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

I am advised by Revenue that with effect from 1 July 2013, Section 156 of the Finance (Local Property Tax) Act 2012 (as amended) converted Household Charge (HHC) to Local Property Tax (LPT), increased all outstanding liabilities from €100 to €200 and made Revenue responsible for collection of those outstanding amounts.

As part of the handover of responsibility, Revenue received the HHC database from the Local Government Management Agency (LGMA) and carried out a comprehensive data matching exercise with its own LPT Property Register. The data matching exercise produced a list of properties in respect of which the HHC did not appear to be paid.

Once the 'unpaid' cases were identified Revenue announced a compliance campaign, including a six week window (to 31 March 2014), to allow people get both their HHC and LPT affairs in order. In regard to HHC, the six week window was necessary because Revenue could not be certain that the 'unpaid' list was fully accurate due to the format of the information held on the LGMA database, for example capturing the details of the person that physically paid the bill rather than the liable person and not capturing data in respect of exemptions/waivers.

In mid April 2014, Revenue wrote to the owners of approximately 274,000 properties who did not bring their HHC affairs up to date during the six week window. The notices clearly warned of the consequences of continued non-compliance and outlined the steps that needed to be taken to avoid debt collection/ enforcement sanctions, including making immediate payment or updating the HHC record where either exemptions or waivers applied.

Revenue has informed me that since assuming responsibility for HHC it has collected in excess of €40m in respect of approximately 253,000 properties, the vast majority of which has been collected since the compliance campaign started. Revenue has also informed me that there are still ongoing discussions in a significant number of cases where the accuracy of the liability is being challenged. Further payments are being received on a daily basis as these cases are finalised and phased payment arrangements are being accepted when requested in the same manner as applies to LPT.

In regard to the Deputy's specific questions, Revenue has confirmed that to date it has issued mandatory instructions to employers/pension providers to deduct HHC in almost 45,000 cases and has offset over 19,000 payments to HHC from pending tax refunds. Revenue has also referred over 800 cases (combined HHC/LPT) to the Sheriff for collection and refused tax clearance certification in over 13,000 cases (combined HHC/LPT).

Revenue has also confirmed that neither interest on late payment charges or surcharges on Income Tax, Corporation Tax and Capital Gains Tax returns have been applied in respect of HHC and no cases have yet been referred for either solicitor action through the Courts or Attachment.