Pearse Doherty (Donegal, Sinn Fein)
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146. To ask the Minister for Finance if the Revenue Commissioners request details of foreign PPS numbers, for example, an Australian tax number, from persons who have worked abroad for the landlord's tax refund of HAP payments; and if he will make a statement on the matter. [36368/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that, in general, where loans are used to purchase, improve or repair rented residential premises, section 97(2J) of the Taxes Consolidation Act 1997 (TCA 1997) operates to impose restrictions on the amount of loan interest accruing between 7 April 2009 and 31 December 2020 that qualifies as a deduction against rental income. However, in accordance with section 97(2K) TCA 1997, those restrictions do not apply where in the period from 1 January 2016 to 31 December 2019, a landlord rents residential premises for a period of 3 years to a tenant who is in receipt of certain social housing supports. In such a case, when computing taxable rents from the property in question, the landlord may deduct the full amount of loan interest accruing in that 3-year period in respect of money borrowed to purchase, improve or repair that property.

In effect, the amount of the interest accrued in each year of the 3-year period is rolled-up and treated as accruing on the day after the 3-year period ends. Relief for this rolled-up interest is then obtained by way of a claim to Revenue after the end of the period. Revenue advise me that the interest deduction is claimed on the landlord’s tax return. If the individual is non-resident for the year of assessment, the tax return requires details of the foreign tax identification number to be provided.  

Revenue further advise me that to qualify for relief under section 97(2K) TCA 1997, the landlord must submit a Declaration of Undertaking Form to the Residential Tenancies Board (RTB). The undertaking commits the landlord to letting the relevant property to a qualifying tenant for the 3-year period and must be submitted at the same time as the tenancy is required to be registered in accordance with section 134 of the Residential Tenancies Act 2004 (i.e. within 1 month of the start of the tenancy).