J
Janeom
Guest
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
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