LPT: PAYE Workers to have property tax taken from wages.

Time
There is every incentive to get the valuation right even in the case where a house
"is under threat of repossession" Revenue can pursue you for the money personally. "Taxes owed" are outside the remit of the personal Insolvency bill and even in Irelands current bankruptcy legislation (from 1988) Preferrential creditors (ie Revenue) need to be paid.
 
Their biggest job will be finding the owners. Hasn't worked out so well so far.
 
Still does not answer the question of how they will take the payment from your pay cheque . I think it was a guy on newstalk that was saying that your employer would have to seek your permission to deduct the money .
What if you did not want it to be deducted at source you might want to pay in quarterly installments or a lump sum one off payment .
 
Importer said:
There are a number of other ways at arriving at a property valuation and Im sure Revenue will accept valuations that are calculated reasonably and with logic.
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I agree with Importer when he says that revenue will accept valuations that are calculated reasonably and with logic.

Im a bit unsure however how this tax deduction at source will work in practice at a practical level. Will the company pay roll IT systems be able to deduct this tax from wages?

As Roker said above will the tax be deducted from Pension payrolls? I know of some pensioners on very very small pensions, how can you deduct say €300 from a €250 pension cheque?
 
It is going to be difficult to establish a valuation basis. Are people going to go around to their neighbours and decide on a valuation for the entire estate.

That aside I think that they will look at another flat rate, say €100 per household, so if the current personal credit is €1,650 they will knock €100 off that in your cert of tax credits for everyone, then it will be up to you to ring them and say I own the house with my spouse/partner and I want to pay half or remove it from them or I do not own a house.

Self employed people will have it added to their return.
 
Revenue can just reduce your tax credits, no need for employer to do anything then.
 
Im inclined to agree with dam099 that the property tax will just be deducted from the personal tax credits.

Revenue will ask all paye workers to provide a valuation for their properties and set a deadline for compliance. Failure to comply most likely will result in hefty penalties. The tax claculation based on the valuations received will be deducted from personal tax credits. The adjusted tax credit cert will be sent on to Employers as normal

The Employers role will be just to apply the tax credits, as they do today

Of course this is all speculation but I fail to see any problems in the successful implementation of this. Remember that the implementation and administration of this tax will rest with the Revenue Commissioners who normally do not mess about. You can expect a completely different approach than experienced with The LAs trying to collect the household charge.

I have a feeling that anyone who tries to beat the system, and I have no doubt there will be 000s, will pay harshly for it in the end
 
No Im not making any assumptions.

In my last post I was just referring to the Paye workers and these account for the majority of tax payers

Collection of the tax for other categories of tax payers will be different.

Look, Its no different to a typical self employed electrician or carpenter or farmer who are self assessed and pay their income tax on the 31 October each year. They need to pay their income tax of their own volition. The Revenue will not call to their houses on the 31 October to collect a cheque, yet most self employed people are astute enough to know that not paying their income tax on time will end up in tears.

You can believe what you want. You can believe that the Revenue will not be successful in collecting this tax and thats fine with me. I believe that they will crack it and the majority will pay up.. Everyone to their own
 
on the registration, in relation to joint owners, it does say that two names can be entered but only one pps number can be entered - sounds like it will be the person registered who will have to make the payments from their wages??!! although hopefully they will allow a one off payment instead of it coming from wages!
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Importer said:
Look, Its no different to a typical self employed electrician or carpenter or farmer who are self assessed and pay their income tax on the 31 October each year. They need to pay their income tax of their own volition. The Revenue will not call to their houses on the 31 October to collect a cheque, yet most self employed people are astute enough to know that not paying their income tax on time will end up in tears.
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This assumes that the person the property is registered to has an income. In my case its not true, in the case of many of my friends and family its not true. There are huge numbers of people living off savings at the moment or ineligible for social welfare (although the registered owner of the property) because they were assessed on their partners earnings.

Revenue and social welfare systems dont have any link up.
 
How will property valued. I recently purchased a house in an estate for €75k. This property was advertised and was available to anyone else. The property was in good condition. I am told that two local auctioneers valued the same type house in the same estate for figures between 120k and 125k. The estate is relatively small and there is no specific location reason within the estate for a variation in the price. The internal condition of the houses are all the same. Which price will people in the estate pay the property tax on. This is an absolutely genuine situation.
 
I dont think there is any value in jumping too far ahead and worrying how people with no income will pay the property tax. We don't know if this category of person will be exempt or not or what the politicians have in mind.

We'll just have to wait and see whats rolled out on budget day.
 
The valuation could be on the insurance rebuild cost, which is taken from the charts published by the Society of Chartered Surveyors of Ireland
 
what about all the people who have not registered 600,000 apparently just say 300,000 are in employment how will they deduct their tax from source. they still don't have a database of home owners
 
I cannot see it being done on rebuild costs. This would be open to as many if not more variations than the other possible methods. I will be sticking with my sale agreed price in my case. This is the price I purchased it for on the open market and I do not see how this can be contracted. If they insist on a higher valuation they can buy it off me or arrange a sale for me and I will take the profit. The value of anything is what someone else is prepared to pay for it.
 
Demot: My rebuild cost is about half of what I paid for it. And if the Insurance companies accept it it must be OK
 
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