THE GOVERNMENT is paying more than €500 million in rent supplement to tens of thousands of landlords without knowing if they are paying tax on their income.
Figures show that of 150,000 claims for rent supplement paid last year, authorities had tax or personal public service (PPS) information for landlords for just 31,000 claims.
This is despite measures introduced two years ago that oblige the Department of Social Protection and the Health Service Executive to request such details prior to paying rent supplement.
From limited data available, records show that some landlords have as many as 60 properties with tenants in receipt of rent supplement, yielding an income from the State of about €135,000 per year.
Briefing material released under the Freedom of Information Act shows that Government officials are concerned that a proportion of landlords are simply failing to respond to the requests for information.
It says “neither the Department nor the HSE has any responsibility in monitoring or enforcing landlord compliance”. This, it says, is a matter for the Revenue Commissioners.
In addition, documents state that due to industrial action by the Siptu and Impact trade unions, members were instructed not to co-operate with the recording of landlord data.
Officials insist, however, that figures for 2009 are based on a preliminary examination of records and that it may have more tax or PPS data on landlords once figures are finalised.
The Department of Social Protection and the HSE will then pass on this information to the Revenue Commissioners, who will check whether landlords are tax compliant.
In cases where only the names and addresses of landlords are available, the Revenue will seek to match this with its own tax and PPS data.
Other documents reveal that the Department of Social Protection has no precise figures on the number of individual landlords who have tenants in receipt of rent supplement.
This is because it often only has information relating to landlords’ agents. New measures introduced in October of 2008 were meant to ensure the Department of Social Protection or HSE obtained a landlord’s tax or PPS number prior to paying rent supplement.
However, internal documents show this information is still missing for two-thirds of new claims made since this date.