Revenue cracks down on landlords in Donegal
THOUSANDS OF owners of investment properties could face fines or other penalties as a result of a Revenue Commissioners' national investigation of undeclared rental income. Revenue officers have been calling to houses and apartments in Letterkenny, Co Donegal, asking questions about the identity of landlords and how much rent is being paid.
A spokesman for Revenue said its mobile service personnel recently began an operation to look at undeclared rental income in the county. The investigation is specific to Donegal and may be extended to other divisions at a later stage.
The spokesman stressed that homeowners availing of the "rent- a-room" scheme would not come under the scope of its investigations. Under the scheme, income from room rental in the house you live in is exempt from income tax, provided it does not exceed €7,620 per year. "We are only interested in investment properties where the landlord does not live. We are only investigating landlords," he explained.
He would not elaborate on the specifics of the operation other than to say Revenue was surveying the level of declaration of rental income in the county. "If someone was found not to be declaring rental income they would have to pay tax, interest, penalties and possibly face a prosecution, depending on the amount of money involved," the spokesman said.
© 2008 The Irish Times