Finance Minister Michael Noonan: Provided the figures in answer to a parliamentary question from Fianna Fáil TD Michael McGrath.

Tens of thousands of homeowners have had portions of their salaries docked or tax refunds withheld after failing to pay property-related taxes.

Revenue has ordered employers and pension providers to deduct amounts from 45,000 homeowners after they failed to pay their household charge, the predecessor to the property tax. More than 19,000 people had tax refunds withheld by Revenue, after not paying the charge which was introduced in 2012.

TDs opposed to the charges have also confirmed Revenue have docked their wages.

The figures come as the Coalition considers penalties for those refusing to pay water charges. This could include taking deposits off tenants or applying unpaid bills to homes when they are sold. The exact penalties have yet to be decided.

In addition to deducting wages and withholding tax refunds, Revenue has referred homeowners to the local sheriff, who can sell their property or goods to raise funds.

Up to 800 cases where the household charge or newer property tax has been left unpaid have been referred to a sheriff for collection. Revenue has also refused tax clearance certificates in more than 13,000 cases.

The figures were provided by Finance Minister Michael Noonan in answer to a parliamentary question from Fianna Fáil TD Michael McGrath.

Mr Noonan said Revenue, in identifying unpaid cases, had now collected €40m in respect of 235,000 properties, most of which was since its compliance campaign began in February 2014.

The minister said neither interest on late payment charges nor surcharges on income tax or capital gains was applied for unpaid household charges. Furthermore, no cases had yet been referred for legal action through the courts or for attachment orders.

 

However, Mr McGrath warned homeowners who refuse to pay their property related taxes could be set for even tougher sanctions.

 

“The Revenue now has sweeping powers to collect any unpaid Local Property Tax and Household Charge bills and they seem ready, willing, and able to use those powers if necessary,” he said.

 

“Anyone who has swept an outstanding LPT or household charge under the carpet in the hope it might go away would be well advised to face up to the issue and make an arrangement with Revenue to settle their liability without delay. The reality is hefty penalty interest at 8% per annum will be applied and this needs to be borne in mind by those on the far left who have egged people on to boycott the tax.”

 

A number of Oireachtas members refused to pay the charge, including Socialist Party leader Joe Higgins, and Independent TDs Clare Daly and Thomas Pringle.

 

Mr Higgins confirmed Revenue had docked part of his Oireachtas pay. “They’ve forcibly deducted it [the charge] from my wages,” he said. “They’ve taken loads of money out of me. But the fact they’re doing it do ordinary workers is outrageous, it’s a draconian power. And self-employed people are getting threats of their tax certs being withheld.”

 

“I can afford it, but others can’t,” Mr Pringle said, adding that the charge was “unfair”.