Éamon Ó Cuív (Galway West, Fianna Fail)
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262. To ask the Minister for Finance the number of farmers who availed of the various tax reliefs, specifically in income tax, stamp duty and capital gains and inheritance tax codes for farmers for the most recent year this information is available, in tabular form; the cost of each relief to the Exchequer for that year; and if he will make a statement on the matter. [34393/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that farmers may avail of a number of tax reliefs. The table below shows the main reliefs used by farmers, and their cost to the Exchequer, for which data are available to Revenue.

** This relief may be claimed by non-farmers in some cases.

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 263 to 265, inclusive, together.

Rent-a-room relief is provided for in section 216A of the Taxes Consolidation Act 1997. Under section 216A, sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting are exempt from income tax where they are below the annual limit for the tax year in question (€12,000 for 2015) and certain other conditions are satisfied.

The purpose of the relief is to increase the supply of rental accommodation by incentivising homeowners to rent out rooms in their principal primary residences to individuals on a residential basis, that is where an individual is effectively using the room either on its own or in conjunction with other parts of the residence, as their home. It is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors.

Having regard to both the express policy intent of the legislation and the construction of section 216A, the Revenue Commissioners have consistently taken the view that the relief does not apply in respect of income from the provision of accommodation to occasional visitors for short periods or where rooms are let for business use or guest accommodation. This position is clearly stated in Chapter 7.1.32 of Revenue's Income Tax, Capital Gains Tax and Corporation Tax Manual, which is available on www.revenue.ie. The manual was updated in February 2015 to reflect the fact that I had increased the annual limit for the relief from €10,000 to €12,000 for 2015 and, in that context, Revenue took the opportunity, in the light of media comments, to emphasise that the exclusion of short term guest accommodation applies equally where such accommodation is provided through an online accommodation booking site such as AirBnB.

Any question relating to the charging of income tax is a matter for Revenue. In this regard, the Commissioners advise that property owners who receive income from the provision of occasional guest accommodation (including from AirBnB lettings) should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner depending on their circumstances.

Under self-assessment rules, an individual in receipt of income from any source is obliged to notify Revenue of the income in question so that the amount of any tax due can be determined. Individuals who pay their tax through the self-assessed income tax system (mainly the self-employed), who are referred to as 'chargeable persons', will generally submit an annual tax return of their income from all sources, make a self-assessment of their tax liability and pay any tax due.

An individual who, in a tax year, has both PAYE and non-PAYE income is not regarded as a chargeable person for self-assessment purposes providing the net non-PAYE income does not exceed €3,174 for the year. The easiest way for such individuals to declare any taxable income from AirBnB or similar lettings, is by completing an eForm12 which is available on www.revenue.ie.

A self-assessed individual who received income from lettings in 2014 should include the income on their 2014 Form 11, which should be submitted by 31 October 2015, or 12 November 2015 if payment and filing is made electronically through ROS. The deadline for submission of an eForm12 for 2014 is 31 October 2015. 

A taxpayer who is dissatisfied with a determination by Revenue in respect of a claim for a tax relief has a right of appeal to the independent Appeal Commissioners and to the Courts.

The Taxes Consolidation Act 1997 imposes an obligation on an agent (such as AirBnB) who is in receipt of rent or other payments arising from a premises to provide the following information to Revenue:

- The name and address of the hosts/landlords;

- Details of rent or other payments received; and

- The address of the premises being leased.

Revenue will use this information as part of its overall programme of identifying compliance risk and targeting its interventions and resources towards those areas of greatest risk.