Rent Arrears Scheme
Applicable to - Persons with undeclared rental income earned during calendar years 2005
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.