Background to the Local Property Tax

[Bronte]

Property Tax Summary

What is it?

It is a tax on wealth rather than income. Prevously it was called Rates and were abolished in the 1970's (?) for political advantage but of course was recouped by increasing income tax by 2%. Later in 199? it was brought in again as a property tax for 3 (?) years and was again abolished as a vote winner. What was really unfair was that many people got away with not paying and were never penalised. This time because of the disaster of the Celtic Tiger this tax has been 'requested' by the Troike as a fairer way to tax wealth and it exists in one form or another all over Europe. Due to the previous disasters on collecting taxes and particular the widespread refusal to pay the household charge the government has imposed some severe penalties this time.

So would be conscious objectors who are non payers - you are warned.

The penalties actually benefits compliant tax payers.

 

[IsleOfMan]

What was really unfair was that many people got away with not paying and were never penalised.

As someone who paid in full, this statement bothers me. Is it factual?

 

[Bronte]

As someone who paid in full, this statement bothers me. Is it factual?

In the past people had all sorts of taxes that they avoided. Unless solicitors were always on the ball in later property transfers people would have avoided it as far as I know. Nowadays a solicitor would have a duty to check on such things as far as I know.

Also back then revenue weren't so good at chasing people. And the tax system gets so complicated that they themselves wouldn't have been able to follow everything. Remember that everything was done on paper, no computers, scans etc. What revenue person is going to try and go to the hassle of that.

Also there were two tax amnesties. I know people who paid no VAT, diddled stamp duty and CGT. Availed of the first tax amnesty and got caught by years later when audited for landlord tax returns which he had been diddling. (a certain current TD may be caught for availing of a tax amnesty and not declaring everything).

If it's any consolution Parklane revenue are much more on the ball and I believe people are more inclined to be tax complaint. Remember too at that time that tax rates were so high it actually turned everybody into tax dodgers. I know my father and my husband had to at one time to pay tax at I think 70%.