Revenue in stamp-duty crackdown
The Revenue Commissioners are cracking down on buyers of new houses and apartments who do not pay stamp duty.
The officers are checking whether buyers are living in the properties. Owner-occupiers who buy a new property do not have to pay stamp duty, but they must continue to live in the property, otherwise they are regarded as investors.
Investors who avoid stamp duty, by claiming to be owner-occupiers and then renting out the property, could be hit with a double tax bill - the unpaid stamp duty plus tax due on any rent paid.
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Is there any "whistleblowing" legislation whereby an intermediary such as yourself (not sure what your precise role/profession is) is obliged to report actual or suspected tax evasion by clients to Revenue?stuart said:I have been stating this for about 2 years now and have been warning any existing/potential clients of this problem
beattie said:Is this really a large scale occurrence, I would have thought that it is a very big chance for someone to take incase one tenant they may have would end up reporting them to the revenue at any stage if there was a falling out.
And what's the betting that in 5 years time, when the Revenue bill (including interest & penalties) does arrive, they'll be whinging about how it's all Revenue's fault and how they should have caught them out earlier!Eurofan said:Plenty of people willing to take the risk though. I know of two personally who would be liable. One has moved to the UK and is renting out her FTB house in Ireland while she lives abroad, no stamp duty clawback, no tax declared. The other simply bought up to a nicer house and is doing the same. I suspect there are quite a few amateur landlords in the latter catagory. I couldn't sleep at night waiting for that letter to come in the mailbox...
It'd be interesting to know how many of individuals in this situation moan about so called "rip-off Ireland" and high taxes?Eurofan said:Plenty of people willing to take the risk though. I know of two personally who would be liable. One has moved to the UK and is renting out her FTB house in Ireland while she lives abroad, no stamp duty clawback, no tax declared. The other simply bought up to a nicer house and is doing the same. I suspect there are quite a few amateur landlords in the latter catagory. I couldn't sleep at night waiting for that letter to come in the mailbox...
Your friend is the one who is ripping the state and the rest of us off by evading three taxes - stamp duty (clawback - the fact that she could not afford this is neither here nor there), income tax on rental income (the fact that it just covers the mortgage is neither here nor there) and CGT on part of the eventual resale gain.bb1 said:it is a rip off, I have a friend ...
Sorry - I simply don't believe this.When she spoke to the revenue about this, the guy on the phone, basically said to say nothing!
"... if any". Happy now?quarterfloun said:Clubman....
Have you a crystal ball?
"and CGT on part of the eventual resale gain"
No - but they would allow the compliant taxpayer to carry capital losses forward indefinitely to be offset against subsequent capital gains.Property prices could fall as well. Would the Revenue be so kind hearted to issue a refund then....?
bb1 said:I'm not saying I agree with what she did, but I can understand where she is coming from, it's not like she's ....
badabing said:If you are going travelling for a year, the best thing to do is go in summer so you straddle 2 tax years, since you are travelling and not domiciled anywhere else, you are still living there, that way you can legally earn over 14k tax and stamp suty free by renting a room in your house. You also maximise your paye tax savings if you are a top rate tax payer by straddling 2 tax years
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