Eugene Murphy (Roscommon-Galway, Fianna Fail)
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172. To ask the Minister for Finance the reason a person (details supplied) is being asked to repay a sum of money that was paid to them in relation to section 22 tax relief; and if he will make a statement on the matter. [2940/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Rented residential relief and owner occupier relief were introduced by section 23 of the Finance Act 1981 in respect of residential properties in certain designated areas (S. 23 amended Chapter 11 of Part 10 of the Taxes Consolidation Act, 1997). The reliefs were granted for a period of 10 years from the year of occupancy of a property. They were discontinued during the previous decade. 

I am advised by Revenue that the person concerned purchased a qualifying property in 2006 and relief was granted to her for 2006 and she received owner occupier relief through her tax credits for 2007 and subsequent years. Relief should not have been granted to the person concerned after 2015 (the end of the 10 period for which relief was due) but, due to an oversight on Revenue’s part, this was not the case. Despite contact from the person concerned to Revenue in May 2017, the relief continued to be incorrectly granted.

I am also advised by Revenue that earlier this month, following further contact from the person concerned, Revenue noted its mistake and apologised for its error. The relief is no longer being granted.

I am further advised by Revenue that a review of the case for 2016 has confirmed an underpayment of tax for the year. A review of 2017 must await the pay and tax details for the year that will shortly be submitted on the P35 return by the employer of the person concerned.

Finally, having regard to the circumstances of the case, I am advised by Revenue that it has agreed with the person concerned an approach to recovery of the underpayment of tax for 2016 that minimises the financial burden on the person concerned; any underpayment of tax for 2017 will be handled in a similarly sympathetic manner.