Holiday Lettings news - Irish Revenue clamps down on owners of property abroad

Irish Revenue clamps down on owners of property abroad

The Irish tax authorities are contacting owners of property abroad. The Revenue Commissioners (Revenue) want to know the property's usage and how it was paid for .

It is claimed that at least 2,500 such letters have been sent out to Irish owners of holiday homes abroad, reports The Independent.

However, the Revenue denies that it is engaged in a campaign targeting Irish property abroad. A spokeswoman for the Revenue explained that foreign property ownership is closely monitored in terms of tax, but "there is no specific letter campaign" currently in place.

Colm Murphy, marketing director of Property Tax International, said: "The letters we have seen are not threatening, but simply state the location of the overseas property in question. [They also ask for] information on how the purchase was funded, if rental income was received and if a tax declaration had been filed."

Murphy went on to say that the letters were an indication that the Revenue is taking advantage of new powers granted as part of an EU-wide tax harmonisation measure.

Under the new scheme, foreign governments can pass on information concerning Irish residents who have property in their country.

Earlier in the year, the Revenue said it would investigate Irish activity in foreign property ownership. The tax authorities want to find out the source of any such purchases and if they are generating any taxable income.

As part of the investigation, it is thought that the Revenue will look at deposit interest earned on foreign bank accounts held by Irish citizens.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

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