Written answers
Tuesday, 27 February 2024
Department of Finance
Revenue Commissioners
Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source
156. To ask the Minister for Finance the process through which the Revenue Commissioners estimate tax that may have been overpaid by PAYE workers (details supplied); and, in particular, whether this is based on an assumption about tax allowable expenses claimed by these individuals, or by applying some inference about these taxpayers from the claims made by others. [9280/24]
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
I am advised by Revenue that the estimation of tax overpaid by PAYE taxpayers is based on the total of all Preliminary End of Year Statements (PEOYS) where an overpayment of tax is indicated.
The PEOYS is made available to all PAYE taxpayers at the end of each tax year and sets out the provisional tax position for that particular year, indicating whether the correct amount of tax and/or USC has been paid based on information, such as income and credits/reliefs, already on Revenue records.
Revenue have confirmed that, where a PAYE Income Tax Return is not completed, it is not possible to confirm the final tax position as individual circumstances differ and additional credits or reliefs may be available and additional income may be declared.
Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source
157. To ask the Minister for Finance the method the Revenue Commissioners use for calculating yearly interest rates on local property tax; the reason behind fluctuating rates; if the Revenue Commissioners are required to inform homeowners of increasing or decreasing interest rates each year; the way for homeowners to challenge increased interest rates; and if he will make a statement on the matter. [9326/24]
Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source
I am advised by Revenue that property owners who fail to comply with their Local Property Tax (LPT) obligations are subject to a range of collection and enforcement options including the charging of interest on late payments. Where LPT remains unpaid, taxpayers are informed in writing that interest will apply on the late payment.
The current interest rate for late payments of LPT, which has not been amended since the introduction of LPT in 2013, is 8% per annum (0.0219% per day). The interest is calculated using the following formula: T x D x R, where T is the LPT payable which remains unpaid, D is the number of days (including part of a day) in the period during which the LPT remains unpaid, and R is the rate of 0.0219%. Consequently, interest will continue to increase on a daily basis until the LPT is paid.
Exceptionally, a reduced interest rate of 3% per annum (0.008% per day) is currently available where a property owner has qualified for a deferral of the LPT due. Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) includes arrangements whereby a person may opt to defer, or partially defer, payment of LPT if certain conditions are met. This current rate was introduced on 1 January 2022, where previously it was 4% per annum (0.011% per day).
No comments