More than 300,000 landlords who deliberately undervalued their property could have their wages or pensions withheld at source, Revenue said.
It has emerged that more than 316,000 people have not updated their home values since 2013 – even though there has been a huge rise in property prices since the post-crash era.
Income statistics showed 54% of owners say their property is worth less than €262,500, while CSO figures show the average sale price of a house in Dublin last year was €506,667 €, compared to €326,457 nationally.
Another 20% of owners put a value between €262,501 and €350,000 on their property. Last January, callers to RTÉ’s Liveline program openly admitted to undervaluing their property to the tax authorities because they disagreed with the property tax.
The tax authority has warned it has “no alternative but to deploy sanctions to ensure payment” after finding tens of millions in property taxes have yet to be paid.
In addition to mandatory payroll deductions, those who fail to pay could have their tax clearance certificates withheld or face interest of up to 8% per year.
Without a tax receipt certificate, they could not borrow from a bank.
A spokesperson for the Inland Revenue told the Irish Daily Mail: ‘It is expected that the Inland Revenue will seek the application of penalties for misrepresentation of property value through the courts.’ However, most increased ratings are either self-corrections or agreed with the owner following contact from Revenue.
In a warning that it will be difficult for non-payers, Revenue also said sheriffs and attorneys can be called to action to collect any overdue payments, which have been put on hold during the pandemic.
An estimated 1.98 million properties will be subject to property tax in 2022, but as the November 2021 deadline has passed, there are still around 99,000 owners who have not paid.
On top of that, Revenue estimates that at least 316,000 have not updated home value in nine years.
He warned that he has the right to apply penalties if the property is not valued correctly.
Last year, 3,850 tax clearance requests were denied for non-compliance, preventing homeowners from borrowing money.
In its year-end report, Revenue said: “There were a relatively small number of cases that chose to remain non-compliant, leaving Revenue no alternative but to deploy sanctions to ensure the payment.”
He said the “vast majority” of tax clearance requests were later processed after acceptable payment solutions were found.
In 2021, 17,869 surcharges were also applied in income tax and corporation tax files in 2021, but 71% of them were reduced or removed, following the payment of possible debts.
The company continued to deduct LPT at source for 73,963 properties through payroll or pension deductions.
And 22,020 ratings have also increased since 2013, which is a result of self-correction or revenue issues.
For 2022-2025, there are 19 different price brackets depending on the valuation of the property, ranging from €90 to €2,721. The annual contribution for a property valued between €350,001 and €437,500 is €405. Revenue revealed that the payment compliance rate is 95%, while the return compliance rate is 90%.
The spokesperson said: “This means that there is a cohort of owners who have paid or set up payment arrangements regarding their LPT but who have not yet filed an updated valuation of their property in their LPT statement.”
But Revenue insists it will work with those who have not paid, given the financial impact of the pandemic. The spokesperson told the Mail: “Revenues are acutely aware that over the past two years a significant cohort of people have suffered in many ways, including financially due to the COVID-19 pandemic. We We will continue to engage with owners who have not yet complied with their LPT obligations.
Revenue received approximately half a million calls to its helpline and over 180,000 correspondence.
The spokesperson explained: “We will continue to help these owners meet their obligations. With this in mind, Revenue encourages owners who have not yet submitted their LPT return to do so as soon as possible or to contact Revenue for any assistance they require.
Revenue Chairman Niall Cody said: ‘Despite the high levels of compliance, we know that some owners have still not submitted an LPT declaration and may mistakenly believe they have met their LPT obligations.
“For the remaining minority of owners who have not yet filed their LPT return or paid or arranged to pay their LPT for 2022, I strongly encourage them to do so immediately.”
In 2021, 552 million euros were collected in LPT.