Revenue Commissioners - Income tax implications for landlords for tracker redress

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FYI for anybody who has been concerned about the Revenue Implications for Landlords.

They have updated their e-briefing back in March 2019 with an updated portion of the Tax & Duty Manual.

If you're reviewing your redress/compensation with your Accountant or getting ready to submit accounts you should have this to hand. It is nothing new, simply the official line on the redress scheme and the implications for previous years etc.

https://www.revenue.ie/en/tax-professionals/ebrief/2019/no-0512019.aspx
 
If you read the full briefing which is a document linked on the Revenue website:

Taxpayers who receive compensation under the tracker mortgage redress scheme
do not have to file amended tax returns in respect of the compensation for the years
impacted by the compensation payments.​
 
It seems strange that Revenue didn't take the opportunity to clarify the position in relation to (what turned out to be) excessive interest deductions.
 
This is extremely confusing. I contacted Revenue via ROS in relation to my redress on a buy to let. I was told to amend my returns for the impacted years by adjusting the interest deduction - resulting in large payments being made to revenue. This clarification seems to deal with "compensation" - I would have to assume, based on what they told me, that interest is not considered compensation
 
blured said:
This is extremely confusing. I contacted Revenue via ROS in relation to my redress on a buy to let. I was told to amend my returns for the impacted years by adjusting the interest deduction - resulting in large payments being made to revenue. This clarification seems to deal with "compensation" - I would have to assume, based on what they told me, that interest is not considered compensation
Click to expand...
It does seem to deal with compensation but then they have this very confusing highlighted paragraph in the middle of their bulletin on their website:

'Any tax liability that impacted customers may incur as a result of the relevant
issue or in respect of any redress, compensation or other payment made to
impacted customers by the lender, as a result of the relevant issue, are to be
discharged by the lender. The lender is to liaise directly with Revenue in this
regard.'​
I would think you need to contact Revenue again, quoting this bulletin, and ask for a review.
 
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