Revenue Note for Guidance

653AB Surcharge for undervaluation of the relevant site

Summary

This section imposes a surcharge on undervaluation of a relevant site.

Details

(1) “Ascertained value” in relation to a relevant site means the site’s market value.

(2) Should the market value of a relevant site as included in a residential zoned land tax return when expressed as a percentage of its ascertained value, be within the range indicated in the percentage bands in column (1) of the Table to this section, the residential zoned land tax due will be increased by a surcharge. The amount of the surcharge is also determined by the Table to this section; column (2) details the surcharge to apply in respect of each of the percentage bands in column (1).

(3) Interest is payable on the surcharge as if the surcharge were residential zoned land tax and both the surcharge and interest are chargeable and recoverable in the same manner as the tax.

(4) Where the amount of residential zoned land tax due is increased by the imposition of a surcharge under subsection (2), the Revenue Commissioners will notify the liable person in writing of the amount of the surcharge

(5) The imposition of a surcharge for undervaluing a relevant site can be appealed to the Tax Appeals Commissioners within 30 days of the issue of the notice under subsection (4). The amount of the surcharge and the imposition of a surcharge can be appealed on the basis that there were sufficient grounds on which the appellant might reasonably have based their estimate of market value on.

Table

Estimate of the ratio of the market value of the relevant site, as stated in the return, to the ascertained value of the relevant site expressed as a percentage. (1)	Surcharge (2)
Equal to or greater than 0 per cent but less than 40 per cent	30 per cent
Equal to or greater than 40 per cent but less than 50 per cent	20 per cent
Equal to or greater than 50 per cent but less than 67 per cent	10 per cent

Relevant Date: Finance Act 2021