are tenants liable for non-resident landlords tax?

re

yes, it appears its true that we the tenants are liable for the landlords tax.

I contacted the ombudsman and they informed me that there are two rules covering tax collection from non-resident landlords.

"Section 1034 applies where there is a collection agent in the state and the extent of the liability is the same as if the person was resident.

Section 1041 applies to rental income received by a non-resident in respect ofproperty located in the state. It differs from Section 1034 in that the tenant pays the
rent directly to the landlord and is obliged to deduct tax at the standardrate from the rent"

they included some extracts from the Taxes
Consolidation Act, 1997

"Section 1034 shall not apply to

( a ) tax on profits or gains chargeable to tax under Case V of
Schedule D,
or
( b ) tax on any of the profits or gains chargeable under Case IV of Schedule D which arise under the terms of a lease, but to a person other than the lessor, or which otherwise arise out of any disposition or contract such that if they arose to the person making it they would be
chargeable under Case V of Schedule D, where payment is made (whether in the State or elsewhere) directly to a person whose usual place of abode is outside the State; but section 238 shall apply in relation to the
payment as it applies to other payments, being annual payments charged with tax under Schedule D and not payable out of profits or gains brought into charge to tax."

So being totally unfamilar with the above jargon I guess it means that if there is not an agent apointed then the tenant must deduce tax. (If I had been aware of that at the start of the lease I can imagine what the landlord and agent would have to say if I had deducted tax before paying them the rent !!! I am should I would have been kicked out straight away minus the deposit..at least then I could have reported them to revenue without being liable for any tax myself).

The ombudsman said that if I feel that I am not being treated fairly by Revenue, that I could make a formal complaint in writing to Revenue and if I still feel that I have been treated unfairly I may contact them again at that stage.

I am just going to let the matter die as I am not going to write to the revenue office telling them of MY non-complicance with the tax law.

Having moved back to Ireland a year ago, I have found many things extremly fustrating but this is way up there.

Janeom
 
commisserations

It's still galling to think you have to put up and shut up when you had what in every way appeared to be a contractual relationship in a business situation! An expensive lesson, and it's these kind of stories on AAM that make me fearful of retaining the family home in Dublin to retire to in 3 years. It's a long way away when there are problems, and as Tommy wrote in his post, the Revenue issues are tricky. Hope you encounter more ethical relationships in your next accommodation. Take it easy!
 
Re: commisserations

Just an update on the story. After meeting the agent to get back our deposit I made it clear to him that we were not happy with the situtation, that the landlord should be declaring this income to the revenue commissioners etc.
Anyway the next evening we get a phone call from the agent ..wondering had we done anything about the tax yet ?When I said no, he said that the landlord would give us €250 (half what we would get back if we were able to claim back our tax) to make peace with us due to the misunderstanding about us being able to claim tax back...or some B*** like that.

so now I know for sure that he is not paying tax, has got scared when we mentioned revenue commisioners and is paying us of to stay quiet. anyway we took the money as as far as I can see both revenue and the landlord were treating us unfairly. Does n't make me proud to take it as I feel we are no better than him now....

Would still love to report him... It disgusts me to think people can get away with that here and it disgusts me even more to think that we were lied to but are still liable for the landlords tax.

Janeom
 
Re: commisserations

Hi Janeom

I don't want to unduly alarm you or over-dramatise your problem but I fear that you have made a big mistake in taking what is effectively a bribe from this geezer. He is breaking the law. Technically, at least according to the (imho erroneous) opinion of the Revenue, you are also breaking the law. Technically both of you have colluded with each other in breaking the law. This guy doesn't appear to be a particularly savoury individual and I would fear that, should things go wrong (ie should he have a Revenue Audit) he would try to pin the blame on you for the entire mess. The fact that you have accepted a bung from him to keep quiet could leave you in a very weak position in arguing your innocence in the whole affair.

You should either (1) disclose everything to the Revenue and refer the matter to your ombudsman and/or your solicitor if necessary (2) consider moving house. The best pad in Ireland would not be worth this sort of hassle.
 
Re: commisserations

Thanks tommy for the warning. Fortunately we have already moved. We waited until moving out to claim back our tax and thats when this all came to light. We lived there for a year but I think he has been renting it for at least 10 years so probably we are not the only tenants who have n't paid tax on his behalf...maybe revenue will come after all of us but hopefully common sense would previal and the landlord and agent will get what they deserve.

Janeom
 
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