This will be a growth market for the Revenue !!
What taxes are due on overseas property anyway? Or is this crackdown to determine how people paid for them?
They should have a hotline for grassing on the lives of the Canny and McSavy. Paupers like myself could blackmail a Canny or a Savy into lending their overseas pad for a few weeks of the year. Otherwise revenue gets a call.
This has been happening for years and the Government did nothing. Now the economy is going down the tubes ,they will be chasing all the loose ends they can find. Good idea, pity they did not do it sooner.
Wait for it there will be a big crack down on dole cheats soon and about time.( Hint to dole office-If he’s covered in mud and dirt and he’s collecting his dole he might be scamming)
Rental Income, if any !!
CGT on the sale is likely what they’re after.
I think Revenue actually state in that article that it is the source of the funds for purchasing the property that they’re really looking at.
In a lot of cases, income tax and CGT will already have been paid in the country in which the property is, and a credit would be allowed against Irish tax for this if we have a tax treaty, so the Irish taxman will only get the excess of Irish tax over foreign tax (if any - Spain had a CGT rate of 35% for non-residents afaik up until recently)
Revenue will be first interested in whether the money to pay for the pad come from taxed income or not.
How much do they know?
Well they know where I live, how much rent I pay, where I work and what I get paid, what I drive. I guess they could know what’s i my a/c going by what DIRT I pay.
What else could they have?
Credit/Debit cards held,
Social Welfare payments received,.
quote]Revenue said it would be using a new high-powered computer based system…
Jaze, systems with computers? And high power an’ all! 20th Century, here we come…
I’d imagine it’s the self-employed/contractors they’ll be going after.
I’m one myself. It’d be very easy to check my invoice/yield figures and see what expenses I’m claiming. I keep my company above board myself, but I know some people that are running their own with very dubious expenses.
The longer they wait, the more ‘penalties’ they can grasp.
The real blood on the streets situation will be when Revenue start chasing the domestic assets of Mr and Mrs Canny McSavvy. People being asked; which of their properties is actually their principal primary residence, which of their properties is the mortgage interest relief associated with, have you been declaring your rental income?
While people will give lots of reasons why this wouldn’t happen I would suggest that you should not discount it. Revenue are not in the business of making friends. If they start to pursue tax dodgers in this country and start seizing and selling, or forcing people to sell property assets, they could drive the market downwards.
On a farsighted note, if they were to drive the property market down to more reasonable valuations they could reignite trading in the housing market which would also help refloat the stamp duty returns.
Will it be anything like the PPARS system?
PPARS system ‘a nightmare’
[Posted: Fri 19/08/2005]
The controversial PPARS health service payroll system is turning into a ‘taxpayer’s nightmare’, according to Fine Gael Health Spokesman Dr Liam Twomey.
His comments follow news that the payroll system is set to cost the State at least 231 million euro, which Dr Twomey says is 25 times the original estimate, and the system is four years behind schedule.
we only need to extend the powers of the CAB
There could a time when the irish state owns all of the coastline along the Black Sea
Thing Fish said
You forgot about the Iberian Peninsula as far and probably including part of the Cote D’Azur.
It’s Revenue not Health so the answer is probably no. Funny how efficient they can be when they’re pulling money in and so careless when they’re throwing it out.
Doesn’t sound very energy efficient to me.
Let’s get John Gormley on the case and get them back to an abacus a slate and a piece of chalk.
I heard the new head of the Revenue on George Hook. She confirmed exactly that - where did the cash come from, and is there a rental income … ???
Looks like the revenue will be busy. Shame they didn’t think of doing this a few years ago…