Grand news for underwater landlords who’ll be able to start paying their mortgages now.
And the government who collect 52% of any rent increase
You’re assuming the landlords are actually paying their taxes!
Whether they do or not is somewhat immaterial. It is a liability for them and an asset for Revenue. When and if those assets and liabilities are ever realised is a matter for the bean counters.
Actually no. Since income tax is self-declared, it is technically not an asset for the Revenue unless the return is correctly filed. It should be an asset, but it will never appear as a receivable on the balance sheet.
Landlords might treat banks as a bit of a joke but few cross the taxman without giving it some serious thought.
Personally I would not under estimate Revenue’s ability to collect taxes.
However it does not take away from the fact that the government is the biggest benificary of rent increases.
As someone else originally pointed out on here:
A €100/month rent increase is €1200/year. now say you convince your employer to give you a raise to cover the increase, he needs pay you €2500 to give you €1200 net. He pays employer’s PRSI on top as well.
Of course the landlord then pays 52% on the €1200
So from the €2500 starting point, the landlord gets less than €600, and the tax man takes the rest.
And good chuck of the €600 (for the landlord) will end up in one of the Government owned banks
I am starting to believe the conspiracy theory that the government is pumping the rental market.
What’s not to believe?
All their words and actions suggest as much. It’s also just the sort of sneaky cowardly stroke this lot would pull. It’s the ultimate stealth tax, you can’t escape putting a roof over your head and the government makes sure it’s taking a nice slice.
Remember the amnesties in 88 and 93?
That is a great point and who can say it wouldn’t happen again. In the mean time though I am fundamentally, corporally terrified of the revenue commissioners. Anyone who has been on the wrong side of them can tell you of their viciousness when they think you owe them money. They will come after you and when you’re drained they will come after your wife. That’s perhaps as it should be, but god they are a terror to behold.
Absofuckinglutely. They are perhaps the most competent branch of government we had.
True. I once met a senior Revenue official in a professional capacity; we were working together on something. I spent the entire time shitting myself, such was the absolute terror she was able to engender in me from across the table. And that’s when she was trying to be nice and helpful. It’s just built into them.
A business acquaintance of mine a few years ago got in real trouble with them. He had sold a stake in an internet firm a few years earlier and had been coasting for many years until the revenue came at him for capital gains. He had a huge ego and was quite the laissez faire capitalist. They literally destroyed him and put him into penury. Completely his own fault. He couldn’t bow to anyone. His marriage broke down under the strain and they still went after his wife (who wasn’t even married to him at the time of the gain). He suffered a lot with guilt over that and drank himself to death / suicide. I was at his funeral. The revenue commissioners didn’t make him do it and are not to blame for a situation of his own making but I learned all about how they operate from then on. If they put you into their “taking the piss” category, you will come out worse. Chilling stuff.
I haven’t been following this block very much, but how many years has it been since people were in these? Two? Such a shame about the fire safety issues, etc. that stopped them from being used for years.
Any idea on the amount of units there? 50+?
There were 80, but during the remedial works they’ve made internal modifications, so there could be more or less units depending on what they have done. I believe they split some duplex apartments into two single storey apartments, not sure about any other changes.