Government committing ’taxsault’ on landlords

We at the Irish Property Owners Association (IPOA) have accused the Government of what we call “taxsault” — assault by taxation.

In a strongly worded letter to the 51 TDs and 21 senators who are themselves private residential landlords, we said that there has been a “grave injustice” to the providers of private rental accommodation for 700,000 people.

The litany of unfair taxation continues and landlords are now being required to pay the €200 tax on non-principal private residences in March, followed by a so far indeterminate local property tax in July, followed again by a so far indeterminate amount of water charges next year.

Oireachtas members have labelled the situation as “ludicrous” given that these are all expenses in the provision of private rental accommodation, and yet cannot be claimed as such against rental income.

Minister Noonan told the Dáil that the property tax would be tax deductible, and then announced that it would be phased in.

Either it is a legitimate expense or it is not. It is a bit like a woman saying she is a little bit pregnant, or like the familiar saying attributed to St Augustine: God, make me good — but not yet. If it is a legitimate expense, it cannot be just phased in as if it is some concession.

An IPOA analysis of Oireachtas members from the last available Register of Interests (2011) showed that in the Dáil, there are currently 50 private landlords out of the 165 members (one vacancy), which represents 31% of members. There are 30 in Fine Gael (including eight ministers), five in Labour (including one minister), nine in Fianna Fáil, and six Independents.

In the Seanad, there are 21 out of 60 members, representing 35% which breaks down into seven Fine Gael, three Labour, seven Fianna Fáil and four Independents.

Stephen Faughnan

Irish Property Owners Association

Navan Road

Dublin 15