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Revenue cracks down on landlords


The Lighthouse Keeper

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http://www.ireland.com/newspaper/ireland/2008/0527/1211830425245.html
Revenue cracks down on landlords in Donegal
CRONAN SCANLON
THOUSANDS OF owners of investment properties could face fines or other penalties as a result of a Revenue Commissioners' national investigation of undeclared rental income. Revenue officers have been calling to houses and apartments in Letterkenny, Co Donegal, asking questions about the identity of landlords and how much rent is being paid.
A spokesman for Revenue said its mobile service personnel recently began an operation to look at undeclared rental income in the county. The investigation is specific to Donegal and may be extended to other divisions at a later stage.
The spokesman stressed that homeowners availing of the "rent- a-room" scheme would not come under the scope of its investigations. Under the scheme, income from room rental in the house you live in is exempt from income tax, provided it does not exceed €7,620 per year. "We are only interested in investment properties where the landlord does not live. We are only investigating landlords," he explained.
He would not elaborate on the specifics of the operation other than to say Revenue was surveying the level of declaration of rental income in the county. "If someone was found not to be declaring rental income they would have to pay tax, interest, penalties and possibly face a prosecution, depending on the amount of money involved," the spokesman said.
© 2008 The Irish Times
Why did they have to go all the ways to Donegal to start? A short journey to Ranelagh, Rathmines and any other so-called flatland areas of Dublin would probably yield a bonanza in undeclared rental income.
And as for the amount of rented appartments in Dublin - years of work await. :roll:
 


Sidewinder

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Cos they can do it quietly in Donegal, they know most of the rest of the country ignores what happens in Donegal - from endemic unemployment to corrupt Gardaí.

So do a quiet sweep in Donegal, from the results of that learn all the canny and savvy strokes the amateur BTL Brigade are trying to pull to hide the money, estimate the amount of penalty income you might pick up over the entire country, and sweep everywhere else all at once.
 

tonys

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The Lighthouse Keeper said:
http://www.ireland.com/newspaper/ireland/2008/0527/1211830425245.html
Revenue cracks down on landlords in Donegal
CRONAN SCANLON
THOUSANDS OF owners of investment properties could face fines or other penalties as a result of a Revenue Commissioners' national investigation of undeclared rental income. Revenue officers have been calling to houses and apartments in Letterkenny, Co Donegal, asking questions about the identity of landlords and how much rent is being paid.
A spokesman for Revenue said its mobile service personnel recently began an operation to look at undeclared rental income in the county. The investigation is specific to Donegal and may be extended to other divisions at a later stage.
The spokesman stressed that homeowners availing of the "rent- a-room" scheme would not come under the scope of its investigations. Under the scheme, income from room rental in the house you live in is exempt from income tax, provided it does not exceed €7,620 per year. "We are only interested in investment properties where the landlord does not live. We are only investigating landlords," he explained.
He would not elaborate on the specifics of the operation other than to say Revenue was surveying the level of declaration of rental income in the county. "If someone was found not to be declaring rental income they would have to pay tax, interest, penalties and possibly face a prosecution, depending on the amount of money involved," the spokesman said.
© 2008 The Irish Times
Why did they have to go all the ways to Donegal to start? A short journey to Ranelagh, Rathmines and any other so-called flatland areas of Dublin would probably yield a bonanza in undeclared rental income.
And as for the amount of rented appartments in Dublin - years of work await. :roll:
That’s exactly what they are trying to avoid.

The revenue select somewhere they can cover with a minimum of manpower & work, publicise it, throw a scare into landlords everywhere else and await a flood of landlords declaring themselves. Result, buckets of money for minimum of time & work, then move on to the hard cases.
 

The Lighthouse Keeper

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Sounds a good strategy and decades overdue.
It wouldn't surprise me if a few Donegal Gardaí own a few oul' flats in the 'mines? :lol:
 
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Its a way of trying out a few techniques in a small area before honing them and expanding it.

Pretty easy way around this is to insist that all mortgages have the PRSI number of the applicant (s) and tell the banks they have to do this retrospectively with details of all mortgages since 2000 and provide the details to the revenue.

Non declaration means no right to deduction of mortgage interest on repayments hence all income is fully taxable plus add in all the penalties.

Next is to ask for declaration of overseas mortgages.

If property held for capital gain without letting out then no right of deduction on int payments.
 

Sligoboy

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odie1kanobe said:
Its a way of trying out a few techniques in a small area before honing them and expanding it.

Pretty easy way around this is to insist that all mortgages have the PRSI number of the applicant (s) and tell the banks they have to do this retrospectively with details of all mortgages since 2000 and provide the details to the revenue.

Non declaration means no right to deduction of mortgage interest on repayments hence all income is fully taxable plus add in all the penalties.

Next is to ask for declaration of overseas mortgages.

If property held for capital gain without letting out then no right of deduction on int payments.
Oh stop making sense :)
 

Oriel27

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I have tenants paying me in cash. I know the bank doesnt care who is living in the house as long as they get their money.
yes i know all about the revenue would be after ye stuff, but we have to take risks. isnt half the country at it. i had to rent the house out as i got a good job in another part of the country.
 
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aggressivesecularist said:
odie1kanobe said:
Its a way of trying out a few techniques in a small area before honing them and expanding it.

Pretty easy way around this is to insist that all mortgages have the PRSI number of the applicant (s) and tell the banks they have to do this retrospectively with details of all mortgages since 2000 and provide the details to the revenue.

Non declaration means no right to deduction of mortgage interest on repayments hence all income is fully taxable plus add in all the penalties.

Next is to ask for declaration of overseas mortgages.

If property held for capital gain without letting out then no right of deduction on int payments.
Sounds sensible. We'll be needing a change of government for that, though, won't we? And the outcry about privacy, etc. would be loud and shrill.
Privacy v Tax Evasion ?

Fraid privacy doesn't come into it
 

Aindriu

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Oriel27 said:
I have tenants paying me in cash. I know the bank doesnt care who is living in the house as long as they get their money.
yes i know all about the revenue would be after ye stuff, but we have to take risks. isnt half the country at it. i had to rent the house out as i got a good job in another part of the country.
You are preventing the tenants from being able to claim tax relief on their rent payments. Furthermore, you must have not registered the tenancy as you are legally required to do. It is gombeen landlords like you that give decent landlords a bad name.
 

loner

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Good idea to flush out rogue landlords----this job should be done countrywide by the Residential Tenancies Board but they are not sufficiently staffed to do the job---it is good to see Revenue doing the job for them.
 

Sidewinder

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meriwether said:
Surely this isn't what 'the property market' (tm) needs right now?
Actually, it's exactly what it needs right now. Flush out the junk, swab the decks, hunt and kill the chancers and crooks. It is far better to get this over and done with quickly. Take the hit on the chin and move on. If you try to prop up a deflating bubble it wrecks your entire economy for many, many years to come and ends up costing far, far more. The Revenue know what they are doing.

Of course, ideally we should also be taking the opportunity to reform the planning system, introduce a properly regulated professional rental sector and tenancy laws, and put manners on the banks by outlawing certain obviously toxic lending practices. Otherwise all this will just happen again in 12 years or so.

If everyone sticks their heads in the sand and refuses to learn the lessons of the last 8 years of insanity, we'll just be doomed to repeat it.
 

TheBear

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<Mod>Moved to the Economy forum.</Mod>
 

CelloP

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Oriel27 said:
I have tenants paying me in cash. I know the bank doesnt care who is living in the house as long as they get their money.
yes i know all about the revenue would be after ye stuff, but we have to take risks. isnt half the country at it. i had to rent the house out as i got a good job in another part of the country.
Just because a tenant pays in cash doesn't mean he can't claim rent relief.

All he has to do is fill in a form and hey-presto a back-dated cheque (as far back as 4 years) is sent in the post.

Did this to my last landlord -- the miserable ****. :mrgreen:

And you DON'T need the landlord's PPS number -- revenue sort all this out for you.

Hope you're sleeping well.
 

just_society

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Crikey! :shock:

1) Lenihan speaks of a property tax on 2nd homes.

2) Tent in Galway races tidied away.

3) Deaf ears to CIF (Fingers crossed on this one).

4) Clampdown on the BTL brigade (looking for undeclared rental income).

There will be a massive amount of 'For sale' signs springing up soon if this extends countrywide. What builder p1ssed off Cowen so much? Or is it that he figures a quick sharp correction will be best.

Payback time indeed!
 

bagel

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back in the good old days a certain mr wall rented out a house to a poor old cash strapped dub;
does this have any tax implications, ie.should mr wall have declared this income to the revenue?
 

bagel

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just_society said:
Crikey! :shock:

1) Lenihan speaks of a property tax on 2nd homes.

2) Tent in Galway races tidied away.

3) Deaf ears to CIF (Fingers crossed on this one).

4) Clampdown on the BTL brigade (looking for undeclared rental income).

There will be a massive amount of 'For sale' signs springing up soon if this extends countrywide. What builder p1ssed of Cowen so much? Or is it that he figure a quick sharp correction will be best.

Payback time indeed!
neither, he's just desperate to get some money, any money (with the exception of the developers and their loopholes), into the coffers of the exchequer.
 

CelloP

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bagel said:
back in the good old days a certain mr wall rented out a house to a poor old cash strapped dub;
does this have any tax implications, ie.should mr wall have declared this income to the revenue?
All cases are dealt with on a case-by-case basis by revenue. Some people get away with murder. Others get away with tax evasion. Some people get sent to prison for not paying their TV licence. Moaning about the latest high-profile gombeen (whoever he may be) getting away scot free doesn't help your case.
 

CelloP

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bagel said:
just_society said:
Crikey! :shock:

1) Lenihan speaks of a property tax on 2nd homes.

2) Tent in Galway races tidied away.

3) Deaf ears to CIF (Fingers crossed on this one).

4) Clampdown on the BTL brigade (looking for undeclared rental income).

There will be a massive amount of 'For sale' signs springing up soon if this extends countrywide. What builder p1ssed of Cowen so much? Or is it that he figure a quick sharp correction will be best.

Payback time indeed!
neither, he's just desperate to get some money, any money (with the exception of the developers and their loopholes), into the coffers of the exchequer.
Good. It's a pity us Irish have to learn by necessity how to run a country.

If this FF economic plan doesn't work, it'll be orders from silk suits in Brussels.
 

just_society

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bagel said:
just_society said:
Crikey! :shock:

1) Lenihan speaks of a property tax on 2nd homes.

2) Tent in Galway races tidied away.

3) Deaf ears to CIF (Fingers crossed on this one).

4) Clampdown on the BTL brigade (looking for undeclared rental income).

There will be a massive amount of 'For sale' signs springing up soon if this extends countrywide. What builder p1ssed of Cowen so much? Or is it that he figure a quick sharp correction will be best.

Payback time indeed!
neither, he's just desperate to get some money, any money (with the exception of the developers and their loopholes), into the coffers of the exchequer.
Forgot to write that in. And of course the examination of those with foreign properties, another big one.

Breaking open the piggy bank. Or a bit like some lads paying emergency tax for an extra few weeks in order to extract it later!
 

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