In response to the CCAB-I’s letter seeking clarification on Revenue’s approach to the self-assessment of local property tax (LPT), Revenue has confirmed that where a property owner has made an honest estimate of the value of their property and can provide supporting documentation, Revenue will not seek to overturn a valuation. However, where the valuation cannot be supported, Revenue will engage with the property owner to agree a revised valuation. Revenue is also working on developments to future pre-populated Form CT1s and Form 11s to alert taxpayers and accountants that LPT irregularities may trigger a surcharge. This will be a positive development given the fact that LPT surcharges arise if a LPT return, or payment is outstanding at the time income tax or corporation tax returns are submitted.

In a letter to the CCAB-I, Revenue stated the following:

When the LPT legislation was amended earlier this year, the ‘section 15 provision’ on properties valued at less than €1 million was removed, thus bringing LPT into line with the way ‘full’ self-assessment works for other taxes.

Notwithstanding this change to the legislation, it’s important to bear in mind that Revenue has always been able to challenge self-assessed valuations for properties valued at less than €1 million if the Revenue guidelines were not followed.

If Revenue has a concern about a self-assessed valuation made by a property owner, the owner will be asked to support their valuation with evidence of the information sources on which the valuation was based. Where a property owner has made an honest estimate of the value of their property, and can provide supporting documentation, Revenue will not seek to overturn a valuation made. However, where the valuation cannot be supported, Revenue will engage with the property owner to agree a revised valuation.

On the matter of aligning agent access to the LPT system with ROS, Revenue advises that for LPT purposes, it is the property rather than the taxpayer that is the taxable entity. Some property records are associated with two or more liable persons. Revenue assures taxpayers/property owners that their records are secure and confidential and for this reason Revenue must ensure that access to LPT records is granted only with their agreement.

Revenue asks agents to specify the properties to which they require access by providing:

• The relevant Property ID/IDs and property address/es; and
• Written confirmation from the liable person that the agent is to represent them for specific properties. The current agent link form is acceptable as written confirmation (“LPT” should be included in the “Other” option) however it is also necessary for the property owner to specify for which properties (using the Property ID) the agent will be acting.

Requests should be submitted to LPT Branch either in writing or via the email address LPTRegisterTeam@revenue.ie. Once an agent request is received, LPT Branch issues a letter of confirmation to the liable person advising that access has been granted to their agent for the specified properties.

Revenue plan to develop pre-populated corporation and income tax returns to alert taxpayers and their accountants to the fact that outstanding LPT payments or returns may trigger a surcharge.

Revenue will apply an LPT surcharge when:

• the LPT return that was due has not been filed and an income tax, a corporation tax or a CGT return is filed
• there are outstanding LPT liabilities at the date of filing an income tax, a corporation tax CGT return
• any LPT due is not being paid in accordance with an agreed payment arrangement.

An LPT surcharge can be avoided if LPT irregularities are corrected before an income tax, corporation tax or CGT return is filed.