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Written Answers - Tax Code

Tuesday, 7 February 2012

Dáil Éireann Debate
Vol. 754 No. 3

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 124.  Deputy Niall Collins Information on Niall Collins Zoom on Niall Collins  asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan  the reason the Revenue Commissioners are refusing to allow the Non-Principal Private Residence charge as a business expense for owners of rental properties despite the statement of the then Minister for the Environment during the Committee Stage of the Local Government (Charges) Bill in Dáil Éireann on 9 July, 2009 that as I understand it, they can set it against their expenses for business purposes; and if he will make a statement on the matter. [6389/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I am advised by the Revenue Commissioners that a person in receipt of rental income is assessed to income tax on the net amount of the rents received, i.e. the gross rents less allowable expenses incurred in earning those rents. In computing the net amount of the rents received, only those deductions that are specified in the Taxes Consolidation Act 1997 are allowable. The legislation is quite clear in this matter. Section 97 of that Act 1997 sets out what are the allowable deductions in computing rental income. The main deductible expenses are:

Any rent payable by the landlord in the case of a sub-lease.

The cost to the landlord of any goods provided or services rendered to a tenant.

The cost of maintenance, repairs, insurance and management of the property.

Interest on borrowed money used to purchase, improve or repair the property.

Payment of local authority rates in the case of rateable properties used for commercial purposes.

Payment of the Non-Principal Private Residence charge is not an allowable expense in computing taxable rental income as it is not included on the list of allowable items.

 125. Deputy Niall Collins Information on Niall Collins Zoom on Niall Collins  asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan  if he will examine a case in respect of a person (details supplied) in County Cork in view of the fact that this person has been [376]advised that he is not liable for this charge; and if he will arrange to have this payment cancelled and refund all payments made. [6400/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I am informed by the Revenue Commissioners that a Tax Credit Certificate that granted exemption from both PAYE and Universal Social Charge (USC) for the current tax year, 2012 was issued to person in question and their pension provider.

The person’s pension provider should refund any deductions of USC that may already have been made, from his private pension, in the current year, 2012, through their payroll system.

The person’s income in 2011 was in excess of the USC exemption limit for 2011, based on the most recent figures available to Revenue.


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