Exchequer returns show slowing of revenue growth (IT)

In 2002 the buoyancy of the Exchequer returns was one of the factors that helped return the Government with a handsome majority. The message from yesterday’s Exchequer figures is that this buoyancy has now disappeared…

As we now know from yesterday’s figures, total tax revenues grew in the first three months of the year by 10.2 per cent, practically identical to the 10 per cent profiled for the period last December.

The big question now relates to whether this deceleration will continue. If it does, years of revenue overshoot may suddenly start turning into undershoot.

The risk that this could happen is evident from that most talked about category of taxation: stamp duty. Last year revenue growth overshot expectations by a whopping 37.4 per cent. In the year to March 2007, the extent of that undershoot has fallen drastically.

Compared to expected growth of 11 per cent, stamp duties have grown by 12.8 per cent, but this should be no comfort whatsoever to the Government, far from it…

If stamp duty receipts continue to slow rapidly, any remaining buoyancy in corporation taxes will not be enough to prevent total taxes from falling below forecasts. If that happens before election day, expect to hear a lot about it.

ireland.com/newspaper/financ … 57077.html

Ouch! That’s gotta hurt!

(Do I feel glee? Yes I do, I had one of those shitty landlords - owner occupier interest relief, but renting it out anyway. Had no interest in the fact the place below was being used as a brothel. Tried to keep the deposit until a stiffly worded solicitor’s letter got it back etc. etc.).

The interest relief in this case isn’t owner occupier mortgage interest relief, it’s those landlords making tax returns and claiming mortgage interest against rental income. In reality this won’t catch any of the “shitty” landlords, as those invaribaly don’t make any tax return. It’ll simply catch people out on the technicality of not having registered with the PRTB.

But next on their list must be people who registered as tenants to claim tax relief, but whose landlord didn’t?