Property tax payment method

gizmo555

Just got my copy of the by now notorious letter from the Revenue.

It includes, inter alia, this statement:

LPT paid by direct debit or deduction at source will automatically continue for 2014 and no action is necessary on your part. However, you are required to indicate a payment option for properties covered by any other payment option. (My emphasis.)

Like many other citizens, I'm puzzled as to why I should be obliged to decide now what payment method I'll use to pay a tax which doesn't fall due until next year.

Just wondering can anyone here tell me what the legal basis is for Revenue "requiring" me to do so?

gizmo555

In light of Revenue's just announced extension to the deadline for telling them how we will pay our property tax, can anyone shed any light on this?

Thanks!

Losty Dublin

gizmo555 wrote: »

In light of Revenue's just announced extension to the deadline for telling them how we will pay our property tax, can anyone shed any light on this?

Thanks!

Here it is, in bread and butter language.

http://www.revenue.ie/en/tax/lpt/lpt-obligations-2014.html

gizmo555

Losty Dublin wrote: »

Here it is, in bread and butter language.

http://www.revenue.ie/en/tax/lpt/lpt-obligations-2014.html

Thanks, but this doesn't really answer my query.

Revenue have asserted in their letter to me that I am "required" to tell them what payment method I intend to use. What I'm asking is what part of which law gives Revenue the power to "require" me to do this? (And indeed, what are the penalties for a failure to tell them in advance how I intend to pay my taxes?)

Losty Dublin

gizmo555 wrote: »

Thanks, but this doesn't really answer my query.

Revenue have asserted in their letter to me that I am "required" to tell them what payment method I intend to use. What I'm asking is what part of which law gives Revenue the power to "require" me to do this? (And indeed, what are the penalties for a failure to tell them in advance how I intend to pay my taxes?)

There is a link on my attached link to FAQs about not meeting your liability; I've it enclosed below. If it still doesn't help you then you ought to call them about any concerns or questions that you still have.

http://www.revenue.ie/en/tax/lpt/faqs/obligations.html

gizmo555

Again, that doesn't address my query. I intend to pay my property tax in full and on time. I'm not asking what are the penalties for not paying - I'm asking where in law Revenue gets the authority to "require" taxpayers to tell them in advance how they will pay their tax bills. I'm deliberately asking here to get, I hope, an unbiased view.

Losty Dublin

gizmo555 wrote: »

Again, that doesn't address my query. I intend to pay my property tax in full and on time. I'm not asking what are the penalties for not paying - I'm asking where in law Revenue gets the authority to "require" taxpayers to tell them in advance how they will pay their tax bills. I'm deliberately asking here to get, I hope, an unbiased view.

Why don't you ask them or maybe an taxation accountant or advisor; they will be better placed to answer this query. At a wild guess, I'd say that it is included in the relevant Budget act.

gizmo555

Losty Dublin wrote: »

Why don't you ask them or maybe an taxation accountant or advisor;

Well, I wouldn't ask Revenue, because to be frank I have no confidence I'd get a straightforward and truthful answer.

They have already made claims about the use of credit and debit cards to pay this tax which it seems to me have no factual basis.

Firstly, they state in the FAQs you link to:

If you choose to pay now by Debit/Credit Card it will be deducted immediately. This is the nature of the banking and credit card systems.

This is complete nonsense. We all know from everyday personal experience that, for example, when buying goods online vendors will often ask for credit card details with the assurance that the card won't be charged until goods are shipped. There is nothing carved in stone in the "banking and credit card systems" to prevent Revenue from deferring collection of card payments until they are actually due.

Revenue also claimed in various news reports that it is unable to hold card details on file citing "data protection obligations". Once again, this is untrue. There is nothing in the Data Protection Acts to prevent Revenue from keeping card details as long as it likes, provided it gets the consent of the card holder. You'd imagine most people would have no problem with this if it meant they didn't have to pay a tax bill three months before it was due. It's entirely Revenue's choice not to seek that consent.

I'm not looking for professional advice either. I don't expect to pay my tax by card and don't think this is likely to affect me personally one way or the other.

I'm just wondering, purely out of curiosity, is there in fact any "requirement" to tell Revenue in advance how you intend to pay the tax, or are they spoofing about that too?