Tenant Liable for Landlords Tax?

P

Papadoc

Guest
Hi. I am hoping for some advice on a tenant/landlord matter. I have been renting a house with no problems for the past 10 months. The initial letting was done through an agent but thereafter we were in direct email and phone contact with the landlord, who lives abroad. We had no problems all year-I would say we are very low maintenance tenants. Property has been registered with the PRTB and rent is paid each month into an Irish bank account.
I have never done so before but as I am entitled to file for tax relief on rent paid, I dowloaded the form from revenue.ie. There is a section on it that says that in the case that your landlord lives abroad, that it was my responsibility to withold 20% of the rent each month and then turn this money over to the revenue department! In big letters underneath, it says that should the tenant not withold this 20%, then the tenant is liable for the tax! In my case, this come to e2400. My plan is to move out at the end of August and I have already given notice. I have contacted the landlord to discuss the issue but have not received any response in over a week. I am getting a bit worried that they have read the same form and seen that the onus is all on me to get the money.
Can it be true that I am liable for the collection of someone else's income tax? Or am I making some mistake in my reading of the tax rules?
Any advice much appreciated.
 
Papadoc-your reading of the form is correct, but your interpretation is not.

The tax you are charged with with-holding is in fact YOUR tax rebate on the rent you have already paid. When you complete your October 2008 tax-return, Form12 (Section 30 Page 8, Section 60 Page 14, on the 2006) you will see where the entries go.
 
Thanks Mathepac. However, a renter cannot claim 20% of gross rent as tax releif.

From citizensadvice.ie:

If your landlord lives outside Ireland and you pay rent directly to them or to their bank account located in Ireland or abroad, you must deduct tax at the standard rate (20%) from the gross amount which you pay. This deduction is not your tax relief, it is tax payable to Revenue from your landlord's income...

If you fail to deduct tax from rent you pay to a landlord living outside Ireland will mean that you (and not the landlord) will be liable for any tax which should have been deducted.

My problem is that I have not with held this 20% and it is unlikely that my landlord will hand it over to me with one month left on the lease.
 
So, as I understand it, the law states that it is the tenants responsibility to collect tax on behalf of revenue but, in practice, this will not be rigidly enforced because it is obviously unfair. I'll take my chances then and apply for the tax relief.

Many thanks for your help!
 
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