rent bouncing back

OldMrBrennan83

This post has been deleted.

The_Conductor

TheDoc wrote: »

I don't believe that to be the case. Reading the Revenue website it is described as "Income Tax". The tenant is basically submitting to Revenue a 20%income tax on the landlord, with what I can only assume is Revenue "assuming" foreign landlords wont pay up.

If it was for services rendered it would be described as VAT, and that is not at 20%.

Its With-holding tax. Here is the section on Revenue's website that deals with it.

Also- I disagree thoroughly with the deduction- and am in no manner trying to defend it- please don't imagine I am.

Mrs OBumble

TheDoc wrote: »

I'd imagine Revenue probably do speak to tenants, who then speak to landlords, and landlords organise it themselves.

While there was a rental tax credit, Revenue routinely asked for LL address when a tenant applied for the credit.

If the LL address was overseas, Revenue would give the tenant the tax-credit, but also adjust their tax credits overall so that the 20% was routed to Revenue as an add-on to the tenant's PAYE.

Typically if they discovered a situation where this had not been done in the past, they started applying it from the date it was discovered, but did not chase the tenant for the 20% for previous periods. (There may have been exceptions if Revenue weren't feeling amenable to the tenant for some reason.)


Now there isn't a rental tax credit any more (or at least a new one), then there's no way for Revenue to discover the situation at a tenant level. I don't know if this is matched by increasing sophistication in how Revenue track tax from overseas-resident LL's.

TheDoc

The_Conductor wrote: »

Its With-holding tax. Here is the section on Revenue's website that deals with it.

Also- I disagree thoroughly with the deduction- and am in no manner trying to defend it- please don't imagine I am.

I know your not

There is plenty of "laws" we have in this country, that while the literature is black and white, the actual enforcement and process around enforcement makes it actually pretty grey, or different entirely. Was interested to know if this was one of them

Sleeper12

StupidLikeAFox wrote:

Maybe his bank account is full and can't take anymore money

I'd love to have one of these accounts.

enda1

As far as I can understand:
-If the landlord's address on your RTA with them is in Ireland, then you're ok.
-If the agreement is with an agent, then it's ok.
-If the rental agreement is with the landlord stating that the landlord resides outside Ireland then you must pay 20% of the rental amount to revenue, with the remaining 80% going to the landlord plus the income tax slip thing from revenue.

Is this correct?

The_Conductor

enda1 wrote: »

As far as I can understand:
-If the landlord's address on your RTA with them is in Ireland, then you're ok.
-If the agreement is with an agent, then it's ok.
-If the rental agreement is with the landlord stating that the landlord resides outside Ireland then you must pay 20% of the rental amount to revenue, with the remaining 80% going to the landlord plus the income tax slip thing from revenue.

Is this correct?

Fully correct- yes.

tina1040

tina1040 wrote: »

How are you supposed to know where your landlord lives? Or if they move abroad during the tenancy?

It's all very well saying it's the tenant's responsibility but how does that work in the real world?

I've been a landlord (in Ireland) for many years and for privacy and safety reasons I have never given my home address to a tenant. My tenant's would not know if I moved out of Ireland once the payments were still going to the same bank account as always.

+1 how can this possibly be enforced. I know people claim revenue won't accept ignorance as an excuse but really how can a tenant know where their LL lives. The LL can easily supply an Irish address even if they live abroad and if they are not told how can the tenant know.

I met my LL twice in 3 years and I never asked nor needed his address (but he could give an Irish one anyway). He could be living on the moon for all I know and I'd never know. I do know he lives in Ireland btw but that's just by chance.

wersal gummage wrote: »

Open to correction but I understand that you are in breach of your legal obligations here.

He has to provide a contact address not his home address. Id never give my home address to a tenant either were I letting a property, I wouldn't want them being able to find where I or my family lived.

The_Conductor

Azalea Damaged Grindstone wrote: »

I know people claim revenue won't accept ignorance as an excuse but really how can a tenant know where there LL lives. The LL can easily supply an Irish address even if they live abroad and if they are not told how can the tenant know.

This very point has been made to Revenue countless times- and has also featured in numerous PQs in the Dáil. All that people can really do is keep hammering away- getting your local TD to query it etc etc- until eventually Revenue decide its an indefensible policy (which obviously they haven't decided thus far).

It is wholly indefensible- however, its still the law- and in this case its a clear case of the law being an ass........