20 February 2008

Other

Rent

Ciarán Cuffe asked the Tánaiste and Minister for Finance if, with regard to the requirement for tenants to deduct 20% of the gross rent payable directly to their landlord's bank account when their landlord is non-resident, the number of cases where tenants' tax credits have been reduced in this instance; the number of these cases that have been appealed to the Revenue Commissioners; and if he will make a statement on the matter.

Tánaiste and Minister for Finance (Mr. Cowen):

I am advised by the Revenue Commissioners that where they are notified by a PAYE taxpayer that s/he has paid rent to a non-resident landlord, a reduction in tax credits is automatically created in order to collect the tax that has/should have been withheld by the tenant. This meets the tenant's liability in relation to the tax withheld.

The Revenue Commissioners also advise that they are not in a position to provide a complete answer in the timeframe for issue of a reply to the Deputy's question. Accordingly, I will contact the Deputy directly with relevant information at a later date.