Those who have not paid property tax will not be charged interest

Those who have not paid property tax will not be charged interest

Homeowners who refused to register for the property tax will not be hit with an interest charge when the money is automatically deducted from their salaries, pensions or bank accounts on July 1.

The Revenue this morning revealed that 1,539,822 returns were made before close of business last night. That means that over 90% of homeowners have complied with paying the charge.

However, despite a large number of returns still outstanding, the Revenue Commissioners revealed that many of these will not be penalised despite refusing to sign up for the controversial tax.

Only in cases where it could not deduct the tax would late-payment penalties be applied, it said.

This is despite repeated warnings to 1.66 million liable homeowners to register by midnight yesterday or face the prospect of an 8pc interest charge on the amount due.

The Revenue Commissioners said the penalty would not be imposed because they could access and deduct the money and so the charge would be considered to be paid on time.

Only in cases where a source of income could not be identified would the interest be applied, and then only following correspondence.

“Interest charges at 8pc per annum apply to late payment of LPT (local property tax) and penalties may also arise,” a spokeswoman said.

“If a person does not file a return, the amount set out in the Revenue estimate will be collected through deduction at source and will not attract interest.

“This is because we’ll have the money on time.

“If, for whatever reason, we cannot deduct at source then interest will be applied.

“Penalties will not be imposed automatically and will be preceded by engagement with the taxpayer.

Leave a Reply