Willie Penrose (Longford-Westmeath, Labour)
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74. To ask the Minister for Finance the way the non-payment of local property tax will be recovered; the level of interest and penalties that may apply; and if he will make a statement on the matter. [21204/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that compliance rates of 96% in respect of Local Property Tax (LPT) were achieved for both 2013 (Half Year) and 2014. The compliance rate for 2015 (year to date) is 94%, which is ahead of target at this point.

The minority of property owners who failed to meet their LPT obligations can be subjected to a range of debt collection/enforcement options as provided for by Section 120 of the Finance (Local Property Tax) Act (as amended). These options include:

- Mandatory deduction from salary, pension or certain Government payments.

- Referral of the outstanding debt to a Sheriff for collection.

- Referral of the outstanding debt to a solicitor for action through the Courts

- Attachment of a bank account or 3rd party debt (owing to the defaulting property owner).

- A surcharge on Income Tax, Corporation Tax or Capital Gains Tax Returns.

- Withholding Tax Clearance certification.

- Offset of any refunds due in other taxes to outstanding LPT/ HHC liabilities.

Interest at a rate of 8% per annum may also be charged on outstanding or late payments as provided for by Section 149 of the Act. 

Part 14 of the Act provides for the imposition of penalties, to a maximum of €3,000, where a property owner does not submit an LPT Return, fails to complete a Return, does not amend a Return when requested to do so (by Revenue) or knowingly makes a false statement for the purposes of reducing the liability.

The total outstanding liability (including tax, interest and penalties) automatically attaches as a charge on the property which as a consequence can not be sold or transferred until the debt is paid.

Finally Revenue has assured me that before any debt collection/enforcement action is started in respect of any tax, including LPT, the defaulting taxpayer is given at least one opportunity to engage and agree mutually acceptable payment arrangements. The debt collection process only starts when there is no meaningful engagement by the taxpayer or where the terms of any agreement are not adhered to.