John Browne (Wexford, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

269. To ask the Minister for Finance the reason it is not inequitable to refuse deductibility of local property tax levied on private rental property against private rental income from that property; how it is equitable to continue disallowing it purely on the basis that it would reduce the tax base; and if he will make a statement on the matter. [28555/15]

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

The Deputy will be aware that 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 Thornhill 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.

The matter will, like all other taxation issues, be kept under review, particularly in the context of preparations for Budget 2016.