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Dublin: 10 °C Thursday 23 May, 2013

Property tax: Seller faces €500 fine if they under-declare value of home

A buyer who discovers that the person who sold them the house under-declared its value when paying the tax will be required to inform Revenue which will then pursue the seller, the Department of Finance said.

Image: Peter Morrison/AP/Press Association Images

A PERSON WHO has sold their home will face a €500 fine if they have not disclosed to the buyer the value that was put on the property when the local property tax was paid, under new measures announced yesterday.

Homeowners who find out that the seller was under-declaring their property value for the purposes of paying a lower amount of the new tax must inform the Revenue Commissioners as soon as they become aware of this.

The Department of Finance issued a statement yesterday evening in response to what it said were a number of “inaccuracies in some reports” about changes to the property tax that were announced yesterday.

A spokesman acknowledged that there may be a reason other than “deliberate under-declaration” that the sale price of a house is higher than the value declared when the property tax was paid.

A spokesman said: “[For example] A general increase in property prices, or improvements in facilities close to the property.

“The purchaser is only obliged to file a return if, in the purchaser’s opinion, the chargeable value declared by the seller could not reasonably have been arrived at.”

The Department said that if a property has been undervalued then Revenue will pursue the seller for the outstanding tax due but emphasised that the shortfall is a matter “entirely between the Revenue and the seller”.

No impact on the purchaser

“[It] has no impact on the purchaser,” the spokesman said.

“The only obligation on the purchaser as a result of this provision is to submit a return to Revenue, on or before the next liability date, where no reasonable explanation can be provided for the difference between the market value and the value that the seller had placed on the property for Local Property Tax purposes,” he added.

The measure was one of a number of changes to the property tax – which comes into effect on 1 July – contained in the Finance Bill, published yesterday, which gives effect to many of the changes announced in last December’s Budget.

Other changes include people being able to defer payment if they can demonstrate that they have suffered a “significant and unexpected” financial loss and would be unable to pay the tax without “excessive financial hardship”.

People who enter a formal insolvency arrangement will also be able to defer payments for the duration of the insolvency period.

There is also a three-year exemption from the tax for property damaged by pyrite while properties owned by local authorities and approved housing bodies will go into the lowest valuation band of €100,000 for the next four years.

More: Pyrite homes, disabled accommodation to receive Property Tax exemption

You asked, we answered: What you wanted to know about the property tax

You asked, we answered: What you wanted to know about the property tax (pt 2)

Plus: The table which shows how much property tax you’ll have to pay

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Comments (83 Comments)

  • So I value my house at €250K, but it sells at auction for €300K, did I undervalue my house?

    Or

    I value my house at €250K, but it sells at auction for €200K, will Revenue give me back my overpayments?

    Or

    I value my house at €250K, but it gets repossessed and sold off for €150K, will Revenue give me back my overpayments?

    If any of the answers to those questions is No, then this piece of legislation is not only silly, it is also unfair, and therefore unenforceable.

    Reply
  • Matt Cooper had Brian Hayes on the radio about this yesterday. How he didn’t just burst out laughing at him and call him a bloody eejit I’ll never understand.

    Reply
  • What if the buyer overvalues the property?

    Reply
    • The buyer will value it at the same value the previous owner did and pay the same property charge, it won’t make a blip on the radar in Revenue what so ever as by asking the buyer to dob in the previous owner they are straight up saying they have no resources (or a proper set up) to check this themselves. Thanks for the info Revenue.

      Reply
  • I fail to see the humour, with the introduction of the property tax, and as I’ve received in the post this morning our new Water Services’s booklet, letting us know we will be getting a water charge soon. Now I don’t understand something here. Their are nearly 500.000 people and families both who can’t afford to pay there mortgages due to being out of work, and reduced salaries. How will these families pay a house tax, or water charge.
    I’m not sure how many people remember the last innings of Fina Geal, but I certainly do, and they managed to nearly cripple the economy then too.
    I’m in the waste business, and I’m being absolutely being hammered with local authority charges, consequently, I can’t hire, any extra staff, in fact I’ve had to reduce staff hours. This current government will slow this economy down to a stall. They have not created jobs, only for multinational companies who don’t pay the full corporation tax. Forgot the small businesses, the backbone of this country.
    We will be paying our house tax, our water tax, our ever increasing motor tax. Slavery is where we are heading, I thought that ended with the passing of the Roman Empire. Not to worry they don’t have long to go, the problem then is who will saves us..

    Reply
    • “How will these families pay a house tax, or water charge.”

      They won’t. They’ll be excused on the grounds of hardship.

      Other people will pay their chunk for them. This is fair under socialism.

      Reply
    • Adrian

      FG’s way is if you don’t earn enough money to feed & house yourself, what gives you the right to feel entitled to food & housing?

      Do you not understand the rules of entitlement? Only the rich are entitled to anything!

      Reply
    • Only the rich are entitled to everything.

      Reply
    • What you describe is indeed true ,Adrian. I am also self employed, I work tirelessly to bring in work in these difficult circumstances. Yet it seems I am an only doing so in order to pay up extra taxes and charges enforced by this government. I lie in bed at night asking myself if I mad or deluded or both. It’s not just the self employed that are being royally shafted by these idiots, every single person that get’s up off his/her ass to work is doing so in order to pay more and more taxes and charges for which we see no benefit. This Country is choking to death and these bloody idiots in charge are doing everything to encourage it.

      Reply
    • Well said anthony..!!

      Reply
    • To this day i can’t understand how the self employed aint entitled to dole if they go bust.
      They create employment, they get no sick pay, they pay their employee’s PRSI, they collect VAT for the government etc etc.
      yet, if they go wallop our beloved “Republic” tells them to go and f**k off if they look for assistance.
      Banks screw us and generations yet to be born for thousands of millions and they get a blank cheque.
      The local newsagent/greengrocer doesn’t get a bloody shilling.
      It’s just wrong.

      Reply
  • A property is only worth what someone is willing to pay for it…

    My house is for sale currently and it seems nobody’s wanting to pay anything for it!

    €500 fine….. Bite me!!!

    Reply
  • What If the Owner has died, will they chase them to the other side?

    Reply
  • Scarr 14/02/13 #

    Hayes was filleted by Matt cooper yesterday over this idiocy.

    Reply
    • And We have issued numerous statements informing those we regretfully elected that We are Not accepting a property tax. The media needs to start reporting on behalf of its readers, and not our dictatorship government.

      Reply
    • Best to ignore Stoolie Hayes and his informer’s charter. We are ruled by consent in a democracy and so any government can be removed if a large enough body of the citizens withdraw this consent. This can be done through mass peaceful civil disobedience. This process started last year when 700k Irish people refuse to pay the unjust Household tax. The protest will continue this year with a mass boycott of the Property Tax.
      CAPTA , the Campaign Against Property Tax and Austerity (formerly the anti Household tax campaign) is organising the fight against this unjust tax and the austerity program generally being imposed on the Irish people to pay for the gambling losses of the financial speculators. Please go along to your local meetings and get involved.
      http://nohouseholdtax.org/
      If enough people can be mobilised to defeat the Property tax, water charges etc, the mandate of this government will have been withdrawn and they will fall.

      Reply
    • Property Tax??
      When are the government going to start calling it by its real names?
      Namely
      The tax that pays for the Corrupt/Criminal acts of Corrupt/Criminal elites.
      Or
      The Tax That Rewards Corruption/Criminality.
      Or
      The Criminal Banker Bonus Tax.
      Or
      The EuroPuppet Tax.
      Or
      The Seanie Fingers Tax.
      Or
      The Pat Neary Tax.
      Or
      The Deutsche Bank Tax.

      Reply
    • GYM,
      Absolutely agreed. The ‘Property tax’ is the government euphemism for a tax on the homes of the Irish people to cover the gambling losses of speculative financial capitalism.
      Unfortunately however, the government and a largely compliant media have been successful in spreading their propaganda to large numbers of the population. Therefore we are using the term ‘Property tax’ as it is the name that people recognise and we want to attract their attention and get them involved.
      It’s very well understood in the campaign that Property tax = Home Tax to bail out bust banks.

      Reply
    • i was dissappointed that Matt Cooper didn’t put the boot in and ask Brian Hayes why the Fine Gael manifesto Feb 2011 contained a promise not to impose an annual recurring charge on the family home.

      Reply
  • No surprise here. We’ve known for years that the dept of finance is managed by idiots.

    Reply
  • You wonder why Fine Gael spent so little time in government since 1922. Then you realize it’s because they make a complete hames of it every time. Remember the infamous tax on children’s shoes? Now we have a muppet like Brian “STASI” Hayes telling Irish citizens to snitch on other Irish citizens.

    Reply
  • I’m only selling to a cashed up purchaser. No receipt either.

    Reply
  • sean 14/02/13 #

    FG can shove their bondholders property tax where the rats can,t get at it ,
    You cannot get blood from a stone
    If I could post you a screen shot of my bank a/ c at this very moment , U will see a balance of €0.81 ………….
    i have to go ask my dad for the lend of €15 in order to put diesel in my car to enable me get to work tomorrow
    Any comeback at that mr David Higgins

    Reply
  • Eoin B 14/02/13 #

    People have had enough of these taxes! First it was the 100 house tax now a full property tax and next year water charges due to be introduced. People can’t afford it I say people unite and boy cot this as it is pushing people past the breaking point.

    Reply
  • This country is a joke. I thought slavery was abolished but instead we are working to pay tax. 51 percent we earn is taxed when you do the figures.

    Reply
  • Only in Ireland. The next tax will be the amount of smoke / CO gas coming out of your chimney and you may tell on your neighbour. Oops did I just gave them a new tax?

    Reply
  • Ciara 14/02/13 #

    It’s not going to work!!!! Simple as that… It’s impossible for people to value their own property accurately ever unless they are in a profession where the know what they are at. You wouldn’t go to the dentist with a broken finger!!! Chances are its worth a lot less than you think it is! To think that they have the neck to penalise the ordinary hard working people on top of expecting them to be valuers ??? What a joke this government really are. Who comes up with these ideas?? They must be all smoking the old wacky backy…. And the young Irish people leaving in droves! There are going to be no Irish people left here after another while… Why would there be when it’s turning into the biggest hell hole!!! Property tax my ass!! Don’t get me started on the roads and car tax!!!!! Angry doesn’t cover it! We just simply can’t afford it!!!!!

    Reply
  • We wouldnt have to pay all this extra tax except for the so called deal with got on debt that doesnt belong to us. Got to love the FG propaganda machine

    Reply
  • Have you woken up to the police state yet? What will you be ‘rewarded’ for snitching on next?

    Reply
  • It’s getting desperate, they are looking to recruit the rats to help them get this unfair tax over the line.

    No way Adebaaaaaaaaaayo wont pay!

    Reply
  • Go way to F*&^

    Reply
  • CUT SPENDING. Fine Gael trying to shift their portion of that deal away from them (or to be more precise, individual politicians’ trying to shift their portion of that deal away from the people who can vote them out of office) feels like a breach of contract. Personally, I “feel” something I’m paying out of pocket more than I feel the same amount deducted from my paycheck. (To take the property tax example, I’m paying for that through payroll deduction so it’s not really “broadening the tax base” and it feels the same.)

    What they are doing is transferring all the taxes to the middle class without any proper spending cuts and wealth taxes. I support a wealth tax provided we cut expenditure rates on entitlements, government wages, grants etc. This would eliminate the need for a property tax or water charges.

    Reply
  • The government are wasting their time because property tax is likely to abolished in the next election.

    Ireland needs to revert to the low-tax low-spend economy like in the 80′s and 90′s. This eliminates the need for “broadening the tax base”.

    Reply
  • Ah lads, ye are falling for this distraction. This nonsense is intentional. To make us focus and deal with this ‘effect’ as opposed to the cause.

    Old school.

    Reply
  • Oh no. I just realised my daughter has 2 dolls houses, how much are they coing to cost us? One was my wife’s that she gave to her, the other came from santa.

    Can somebody please help me value these properties for the new tax.

    Reply
  • 14/02/13 #

    And also, just listened to Matt Cooper interviewing Brian Hayes.

    Maybe minister Hayes could look at cutting massive salaries/perks/pensions and chronic wastage in the public service. If he did that, we wouldn’t need a property tax.

    But of course he won’t cause it will affect him, his friends and they mustn’t upset the unions…oh no.

    Let the great unwashed pay for me and my government not doing my job.

    Reply
  • 14/02/13 #

    This makes no sense.

    When you purchase a house, you would rarely if ever meet the sellers as everything is facilitated by estate agents and solicitors.

    If you don’t ever meet someone, how on earth are you going to have an opportunity to ask them what property tax they were paying ?

    These guys really are living in cloud cuckoo land

    Reply
  • So, let me see if I have this right – say my house is valued at 100k for household tax and insurance purposes and then I sell it – what happens if there’s several bidders interested and the price goes up to 200k – not likely, but how can I then be liable for the tax on the difference, when it’s the buyers that have pushed the price up over actual value – a house is worth as much as someone is willing to pay for it – and if they’re willing to pay more for it than it’s value, then why should the seller suffer?

    Reply
    • 14/02/13 #

      Catherine, the whole thing is half-baked. They are making up as they go along. What’s the bet they read comments on sites like these and go “Oh yeah, hadn’t thought of that scenario – must include that in the next bill”

      Reply
    • the ding-dongs that “govern” this country are all school teachers, farmers, solicitors and publicans.
      if they’re ministers it means they’ve been at the toadying game for that long that they don’t know which way is up, far less what it’s like to actually live in the real world.
      TDs should be allowed stand for election for a max of 3 times, top civil servants should be rotated every 10 yrs.

      Reply
  • Big brothers East German cousin the Stasi new job as Irish taxi inspector is operating in Ireland.New office building called the Eric Honecker Hogan building is the new HQ as we get fellow citizens to spy on you.

    Reply
  • What if the Seller has not recognised the Govts authority to put a tax on their family home and does not consent to it?
    I am still waiting robe shown my obligation to pay this.

    Reply
  • Aurfur 18/02/13 #

    A stipulation of our planning permission like many others is that we can not sale for seven years after completion. Therefore our resale value is nil for 7 years from date of completion, unless we default on mortgage or like, which we can’t.

    Reply
  • BMJF 02/03/13 #

    This is ridiculous nonsense – in a defunct property market ( in fact in any property market) you will have people who have “correctly valued” their house for property tax purposes to later discover during its sale that it is NOW worth more than they & revenue believed i.e what others are willing to pay for it during a competitive bidding process! The suggested process of setting neighbour against neighbour is wrong & more disgusting right wing fascist style government from Fine Gael. It’s impossible to put a true commercial value on something UNTIL you actually find a buyer!!

    Reply
  • You don’t have to wait ’till the next election!

    You can vote now at: http://www.HomeTaxPetition.net

    (To pass legislation to fine the Irish for not becoming “informers” is just unbelievable!)

    Reply
  • It will be bye bye to all the B&Q workers and plenty more jobs be lost too between painters builders engineers with people afraid to even paint their house in case it increases its value do they want us all to live in hovels

    Reply

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