The charge applies mainly to owners of private rental property and holiday homes. It also applies to vacant residential property unless newly built but unsold (handy if you are a developer, lousy if you are the owner of a newly un-lettable gaff). Liability to pay the charge is assessed by the owners themselves. Ownership of a non-principal private residence on the ‘liability date’ (31st July 2009) determines liability to pay the €200 charge.
Payment is due by 30th September 2009. A €20 per month late payment fee will apply from 1st November in respect of each month for which payment is overdue. This bit is interesting – because normally surcharges and penalties for any unpaid tax are much much lower, this amounts to an ongoing 10% fine for every month – while €20 may not seem excessive, it is certainly (when viewed in percentage terms) extreme. Especially given that there is not much being published regarding the tax, have you read about it recently? Have you been told the deadline is coming?
Funny thing with tax, ignorance is not a defence, so don’t let the surcharge catch you and end up paying over the odds. Another funny thing: if you overpay tax you can only claim back to the last 6yrs, but if you underpay your liability is timeless, you can be screwed going back as far as revenue want. You have to love the system (love=profound hate)
This is the nonsensical bit of property tax that did make it through the system, it has nothing to do with common sense, it doesn’t make everybody pay for the services they receive, it is merely rent taking at its worst, so, my investor readers, you know what to do, assume the position, more luidicrous Irish taxation has arrived.