What happens if you do not comply?

You are not tax compliant if you, as a liable person, fail to meet your Residential Zoned Land Tax (RZLT) obligations.

Non-compliance includes instances where a relevant site owner fails to register and account for RZLT.  If you underpay the amount of RZLT due, tax and interest may accrue as a charge on the land. If you significantly undervalue your land for the purposes of the tax, a surcharge of up to 30% may be applied.

Surcharge for late submission of an RZLT Return

A surcharge may be imposed on you as a liable person for submitting your RZLT return after the due date.

If your return is not submitted by the due date, your RZLT liability for the year will be increased by the amount of the surcharge. The surcharge is a percentage of the total RZLT payable for the year for which your  return is submitted late.

For further information, please see the 'Surcharge for late submission of RZLT return' section of Tax and Duty Manual Part 22A-01-01.

Surcharge for undervaluation of a relevant site

A surcharge may apply where you, as a liable person, undervalue a relevant site when calculating your tax due amount in your RZLT return.

An appeal for the imposition and enforcement of surcharge, for the undervaluation of a relevant site, may be submitted.

This appeal should be submitted to the Tax Appeals Commission (TAC).

For further information, please see the 'Surcharge for undervaluation of a relevant site' section of Tax and Duty Manual Part 22A-01-01.

Tax clearance

If, as a liable person, you fail to meet your RZLT obligations, you may be refused tax clearance.

Tax Clearance may be refused where:

• outstanding RZLT return(s) in respect of a relevant site owned by a liable person is/are not filed
• RZLT liabilities in respect of a relevant site owned by a liable person are outstanding
• or
• interest and penalties as agreed or determined are outstanding.

For further information, please see the 'Tax Clearance' section of  Tax and Duty Manual Part 22A-01-01.

Interest charges

An interest charge of 8% per annum (0.0219% per day) applies to any late payment and underpayment of RZLT.

Note

Where RZLT is outstanding and/or includes interest for late payment remains unpaid this becomes a charge on the land to which it relates.

For further information, please see the 'Interest on late payment of RZLT' section of Tax and Duty Manual Part 22A-01-01.

Enforcement of RZLT

Revenue provides several payment methods so that you can meet your RZLT obligations as property owners.

If an owner fails to register and account for RZLT, or underpays the amount of RZLT due, Revenue may take enforcement action to collect the outstanding tax. Any outstanding RZLT (including interest) may be referred to the Sheriff or a solicitor for collection.