Pension providers and employers will, no doubt, be watching reports on the payment of the Local Property Tax (“LPT”) with interest. They may not be aware that the Finance (Local Property Tax) Act 2012, which introduces the LPT, places an obligation on pension providers and employers to facilitate payment of the LPT by salary deduction when directed by the Revenue Commissioners to do so in respect of the person liable for payment of the LPT. Revenue may make such direction in a number of situations including when the liable person:
- has opted to pay the LPT by salary deduction or, perhaps more contentiously;
- has not elected any payment option; or
- has opted for another payment method but has defaulted in payment by that method.
Pension providers and employers should be aware of this obligation as deductions of LPT for 2013 will commence from July and must be spread evenly over the pay periods occurring between July and December 2013. They will be required to account for and remit the deducted LPT to Revenue on Form P30. Additionally, there are specific provisions for situations including the overdeduction and underdeduction of the LPT, cessation of employment, maintenance of records and failure by the pension provider or employer to remit the LPT. Clearly this obligation for pension providers and employers to facilitate payment of the LPT creates a number of new administrative and compliance burdens to be considered and addressed in advance.
Please refer to this Revenue link for more information.