Taxes Consolidation Act 1997 section 653AB

Surcharge for undervaluation of the relevant site

Section 653AB imposes a surcharge where a liable person undervalues a relevant site for residential zoned land tax (RZLT) purposes, with the surcharge rate depending on the degree of undervaluation.

• A surcharge applies where the value of a relevant site included in an RZLT return is less than 67% of its market value (ascertained value), with rates of 10%, 20%, or 30% depending on the degree of undervaluation
• The surcharge is calculated as a percentage of the RZLT due on the site's market value, and interest is payable on the surcharge as if it were RZLT
• Revenue must notify the liable person in writing of the amount of any surcharge imposed
• The liable person may appeal the surcharge to the Tax Appeals Commission within 30 days of the notice, on the grounds that there was a reasonable basis for the valuation used; a separate appeal against Revenue's valuation of the site lies to the Land Values Reference Committee