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Rent Arrears Scheme

Applicable to - Persons with undeclared rental income earned during calendar years 2005

to 2012.

The Scheme – Persons who have not declared their rental income derived from a

tenement leased as a residence or garage during 2005 to 2012 may now do so and pay a

flat rate of 15% on such undeclared rental income.

Such persons have the opportunity to declare the undeclared rent for calendar years 2005

to 2012 on the prescribed form (TA24A) and pay the 15% tax on a two-year averaged

rental revenue received for the mentioned period of time.

The prescribed form will ask the tax payer to include details of the property rented out

(such as address and amount of rental income). In addition a cheque payment covering

the amount of tax due, must also be attached to the form and submitted with the Inland

Revenue Department by not later than 30th June 2015.

No interest or penalties would be charged on such declarations.

This scheme only applies to rental income which was not declared during calendar year

2005 to 2012. Therefore, rental income received in 2013 and subsequent years should be

or have been declared in the tax return for that year and subject to tax as applicable.

Non declaration - Non or undeclared rental income may be scrutinized by the

Commissioner. If the Commissioner conducts an enquiry and determines that any rental

income which should have been declared was not so declared or is undeclared, such

income shall be charged to tax at the rate of 35% on every euro of the gross rental income

received. Furthermore, such tax shall be in addition to any interest and additional tax

payable under the Income Tax Act.