Michael McGrath (Cork South Central, Fianna Fail)
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175. To ask the Minister for Finance the number of refunds that have been completed for second-hand home buyers who were incorrectly charged the local property tax in 2013; when the process will be completed; and if he will make a statement on the matter. [29801/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the refunds to which the Deputy refers arose from the initial interpretation of Section 8 of the Finance (Local Property Tax) Act 2012 (as amended).

The Section was originally interpreted as benefitting first-time buyers of second hand houses but was subsequently deemed to benefit any person who purchased a second hand house in 2013 as a sole or main residence. The exemption did not extend to individuals who purchased second hand properties in 2013 for purposes other than as a sole or main residence.

As a consequence of the initial interpretation some home owners were charged and paid LPT where they were entitled to benefit from the exemption. Once the revised interpretation was confirmed Revenue carried out a review of properties purchased during 2013 to ascertain entitlement to the exemption.

The review identified in excess of 12,000 properties with possible entitlement to the relief, each of which was individually examined. The relief was granted in over 4,000 cases and payments were refunded to almost 1,100 of those property owners. The balance of the eligible cases had not paid the LPT so no refunds were due. In excess of 7,000 cases were found to be ineligible for various reasons, for example rental properties.

Revenue has confirmed that the process has been largely completed at this point with the exception of less than 600 cases who have not yet responded to correspondence issued by Revenue.