Householders 'will cheat' on tax assessment
A SELF-assessed property tax will result in homeowners deliberately undervaluing their house, the Government's own tax experts have warned.
The property tax would be the same as a 1pc hike in the basic rate of income tax or a 2pc rise in the higher rate. It would raise €500m for a Government that has pledged not to increase income tax on householders.
The warnings were contained in a detailed 16-page report prepared on the property tax by the Tax Strategy Group.
The senior civil servants pointed out the dangers of people deliberately undervaluing their house to minimise the amount of tax they have to pay.
They said there could be "inconsistent" estimates of house values.