The deadline of November 14th for the return of the 2014 Property Tax payment method confirmation (LPT1A) forms has now passed – but Revenue will still accept them . (Better late than never) . The deadline for the online payment method confirmation is Nov 27th .
Letters will not have been sent to anyone who paid the 2013 LPT by direct debit or by deduction at source.
You can see a list of the Property Tax 2014 Amounts here
Property Tax Penalties
There are penalties that Revenue can apply for various rreasons – but they have always said that penalties will not be applied automatically – Revenue say they will attempt to contact the liable person first.
Late Payment Penalty
The legislation allows for interest to be charged on late payment of the property tax. The rate of interest is 0.0219% a day i.e. 8% per year .
Based on Revenue anouncements in 2013 - if someone does not confirm their method of payment for the 2014 LPT – Revenue will then try and collect it by deduction at source (from wages/pensions or certain welfare payments) and it will not attract interest penalties. A reminder letter will be sent before deduction at source commences.
If for any reason , Revenue find that deduction at source is not possible – then they say interest will be applied. But – Revenue say that penalties will not be imposed automatically and will be preceded by engagement with the taxpayer.
Because the LPT does not have to be paid in full until the end of 2014 – we think it is very unlikely that Revenue will apply any late payment penalties for the 2014 tax until at least 2015 . Any penalties will be proceeded by reminders and warnings.
More about Paying the Property Tax Here
A penalty equal to the amount of Local Property Tax that would have been payable (capped at €3,000) may be imposed in the following cases.
a) If a liable person fails to send back (or electronically file) a property tax return. (The legislation does not mention penalties for late returns)
b) If an incomplete return is sent and the person fails to supply the missing information within a reasonable time of being requested to do so.
c) If a false return is filled in
So - if someone declares the value of their house to be in band 1 (€90 a year) when it should be in band 5 (€495 a year) – and they get caught out – the penalty would be €495 .
The penalty cap of €3000 benefits those in more expensive homes- for example : If someone who has a house worth €4 Million declares it to be worth only €1 million. If they get caught – their correct full years property tax will be €9300 but their penalty will be just €3000.
A penalty of €100 a day (max €3000) may be applied to any relevant person or company that doesn’t supply information requested by Revenue ( Information such as the owners name, property size, etc). This is aimed at companies and organisations like An Post, ESB , Bord Gais , HSE etc . Not individual homeowners.
If a penalty is imposed, it will be treated as an amount of outstanding Local Property Tax and may be recovered in the same manner as the tax.
While the Revenue Commissioners may choose to recover the amount of any penalty by means of court proceedings, they are not restricted to this method of recovery.
Any Local Property Tax or penalty that remains unpaid will become a charge on the property to which it relates and will have to be discharged to the Revenue Commissioners on the sale or transfer of the property.
Penalties on Employers
The Property Tax can be deducted at source from wages – but if employers don’t deduct amounts as instructed or don’t keep records of deductions – they may face a €3000 penalty.