herald

Monday 18 December 2017

Plans reveal property tax clampdown

A new clampdown on property tax valuations will put neighbour against neighbour
A new clampdown on property tax valuations will put neighbour against neighbour

A new clampdown on property tax valuations will pit neighbour against neighbour as the taxman compares the values a homeowner places on their house with people living nearby.

The Revenue Commissioners also plan to use the energy rating of a house to put a value on the property.

The details of Revenue's plans to expand its ability to value properties is contained in the annual report of the taxpayers' watchdog.

The Comptroller and Auditor General's report reveals the Government underestimated the amount of money to be collected from the property tax - €250m was expected to be collected, with €259m actually coming in last year.

The report says 3,600 homes across the country were valued at €1m or more for the property tax. However, the number of million euro homes was actually 20pc higher than Revenue expected.

A total of 3,900 property owners voluntarily corrected their valuation upwards this year, with 187 saying their house was worth €250,000 more than their previous estimate.

Some 14,400 homeowners opted to have the property tax deducted from social welfare payments, and 1,800 farmers opted to pay their tax fout of Department of Agriculture payments.

The C&AG recommended using additional ways to ensure compliance with property tax valuations. Revenue has indicated it intends to broaden its ways of valuing properties.

methods

It said one of its methods was to compare returns for a property against those of its neighbours and the average for the location. The system "readily identifies properties where the return valuation differs from the neighbourhood average".

Revenue also said it was looking at getting information on energy ratings. Better insulation and energy-efficiency adds to the value of a house.

hnews@herald.ie

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