Michael Healy-Rae (Kerry, Independent)
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56. To ask the Minister for Finance if an anomaly (details supplied) relating to the payment of the local property tax will be examined; and if he will make a statement on the matter. [24660/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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Revenue provides a range of payment and phased payment options that allow property owners to meet their Local Property Tax (LPT) obligations in a manner that best suits individual circumstances. One of the available phased payment options is Deduction at Source (DAS) from various payment schemes operated by the Department of Employment Affairs and Social Protection (DEASP).

These schemes are suitable for DAS as they are paid on a regular (weekly) basis over the course of the year. This allows recipients pay their LPT liabilities in even amounts over a fifty (50) week period, thereby reducing the financial burden to the greatest extent possible. However, section 189 of the Social Welfare Consolidation Act 2005 provides that any DAS amounts cannot reduce the personal DEASP rate of payment below €201 per week. Consequently, LPT deductions cannot be applied if they reduce the recipients net payment below this legal ‘de-minimus’ threshold and Revenue has no discretion to operate outside of this position.

For situations where DAS is not possible, Revenue provides a number of payment alternatives. For example, property owners can select a single (annual) debit, a monthly direct debit or can make regular payments through one of three approved payment service providers (An Post, Payzone and Omnivend). These options are provided by commercial entities who charge on a per-transaction basis and Revenue has no role in determining the level of cost imposed. 

I am advised by Revenue that the person in question met her LPT liabilities through DAS from her DEASP payment until February 2015. The arrangement was discontinued after that date because the deduction reduced her net payment below the ‘de-minimus’ threshold. On confirmation of the situation from DEASP, Revenue made a number of attempts to contact the person to discuss possible alternatives but received no responses. In the absence of any contact, Revenue ‘deferred’ the person’s liability on the basis of her income threshold in accordance with sections 131 and 132 of the Finance (Local Property Tax) Act 2012 (as amended).

Deferral is not an exemption and the unpaid charge remains on the property and accumulates interest at a rate of 4% per year. The deferred amount also attaches to the property as a charge that must be paid before any sale or transfer can take place.

Revenue is aware that payment of the outstanding amount could cause financial difficulties for the person, assuming she does not wish to continue on the deferral option. For this reason, Revenue has confirmed that it is willing to work with her to agree a mutually satisfactory arrangement. To advance matters, the person should contact Revenue at telephone number 065 6849081.

Seán Fleming (Laois, Fianna Fail)
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57. To ask the Minister for Finance the number of cases that incurred a local property tax generated surcharge in each year since the local property tax was introduced; the amount of such surcharges; the amounts actually paid in respect of these on an annual basis; the breakdown of the surcharge generated with regard to income tax, corporation tax and capital gains tax; and if he will make a statement on the matter. [24669/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 38 of the Finance (Local Property Tax Act) 2012 (as amended) provides that property owners who fail to meet their LPT obligations will be subject to a tax-geared surcharge when filing an Income Tax (IT), Corporation Tax (CT) or Capital Gains Tax (CGT) return.

The surcharge is set at 10% of the appropriate IT, CT, or CGT liability to a maximum of €63,485 and is in addition to the actual LPT liability plus any interest arising on foot of late payment. The surcharge is imposed from the date the IT, CT or CGT return is filed. Under certain conditions the surcharge can be reduced to the total amount of LPT outstanding. These conditions include situations where the surcharge amount is higher than the outstanding LPT liability, where the property owner files the LPT return or pays the outstanding liability either in full or on a phased basis.

Revenue has advised me that up to 55,000 surcharges have been raised since the commencement of LPT, but almost 70% of these were mitigated following remedial action by the property owners. The information requested by the Deputy is set out as follows:

The total values of surcharges ultimately applied (for all years) are:

IT - €5.7 million

CT - €410,000

The surcharge payments collected are classified as IT, CT or CGT as appropriate and are not included in the LPT receipts. The total values of surcharge payments received to date are:

IT:  €4.4 million

CT: €294,000

A yearly breakdown on the total value of surcharges and the CGT surcharge value and payments data are not available at this time but will be provided to the Deputy as soon as possible.

The following Table sets out the number of cases for which surcharges have been raised.  For the majority of ‘CGT Assessment’ cases, surcharges were also applied under IT or CT.