Taxman targets landlords dodging tax on rent

Date Published: 27-Apr-2011

Revenue inspectors have begun making door-to-door house calls across Galway in a major crackdown on tax-dodging landlords, the Connacht Tribune can reveal.

It is estimated that potentially thousands of professional landlords, as well as ‘amateurs’ who bought during the property boom, are facing massive fines.

The operation is part of a key ‘shadow economy’ strategy by Revenue which could see millions of euro collected in Galway through undeclared rental income and fines.

Dubbed the Revenue ‘Rainy Day’ fund, there are unofficial estimates the Exchequer could be losing out on as much as €6 million from undeclared rental income each year in Galway.

Already, there are reports of additional resources are being deployed to assist in the crackdown.

And with Finance Minister Michael Noonan currently preparing his jobs stimulus package, the new Government is examining all methods at its disposal to increase its revenue take – including this one.

It’s understood the main focus of the operation is on tax-dodging landlords who are not registered with the Private Residential Tenancies Board, which is an offence in itself.

Inspectors have identified specific housing estates and residential areas in the city and county to target and have begun calling door-to-door to establish if a property is rented and the identity of the landlord.

A Revenue spokesperson confirmed to the Connacht Tribune this week that Galway is being targeted by officers – any undeclared landlords face an immediate audit.

“Yes, there are Revenue officers carrying out inspections of properties in Galway.

“These inspections form part of a rental sector shadow economy project in the region,” he said.

See full story in this week’s Connacht Tribune.