AT A TIME when the Government is strapped for cash, it would appear sensible to ensure that citizens pay their due taxes. But Ministers are dragging their feet. Landlords have traditionally led a charmed life where such payments are concerned. Dingy bedsits and the black economy went hand in hand. The situation improved as tenants' rights were addressed and the Residential Tenancies Act of 2004 came into force. There is still, however, a long way to go.
The extent of the tax evasion involved was brought to the attention of the Dáil Committee of Public Accounts by the Comptroller and Auditor General, John Buckley. He found the Department of Social and Family Affairs was not active, as required by law, in demanding and recording the PPS (personal public service) numbers of landlords who provided €442 million worth of accommodation to its rent supplement and accommodation schemes. Less than half of its records could be matched with those of the Revenue Commissioners. Right across the rental sector, an estimated 50,000 flats and apartments have not been registered. That could amount to tax evasion in the region of €100 million.
Earlier this year, the Private Rented Tenancies Board complained it was unable to process complaints made by tenants in a large number of cases because the addresses of their landlords could not be established. That is an appalling situation. Not only are these landlords operating in the black economy, they are abusing their tenants. A serious crime is being committed. Tracking down a landlord should not be particularly difficult. After all, the rent has to be paid.
John Buckley has recommended that a new law be passed to enable the Revenue Commissioners identify all landlords in the State. Support has been forthcoming from the Committee of Public Accounts and it now falls to the Minister for the Environment and Local Government, John Gormley, to bring forward legislation. The Minister should also address the issue of estate management companies. Legislation has been promised for years. The rights and obligations of tenants in apartment complexes should be clearly set out and the management companies appointed by developers should be licensed and regulated.
Considerable efforts are being made to crack down on fraudulent welfare claims by single mothers and unemployed construction workers so equal attention should be devoted to non-compliant landlords. It is an area that has been seriously neglected for too long.