Govt identifies tax dodging landlords - The Canberra Times

The ACT's tax chief has named 16 properties across Canberra that have fallen into tax arrears, and warns he will repossess the sites if the debts are not cleared.

Revenue Commissioner Kim Salisbury said last month he would begin publicly identifying the properties of tax dodgers to coax the landlords into paying overdue rates and land tax.

All of the properties - 11 houses, four units and one site used by a recycling business - are owned by investors. The tenants are not responsible for the debts.

Mr Salisbury had never previously invoked his power to "name and shame" properties in arrears; a power that had been used only twice since self-government.

However, he intends to name even more sites soon as his office steps up its campaign to collect unpaid land taxes.

In a letter tabled in the Legislative Assembly that identified the properties, Mr Salisbury said: "The rates and/or land tax payable in relation to the following parcels of land have been in arrears for at least one year and I have given notice of the arrears by registered letter addressed to the owner of the parcel at the last known address."

ADDRESSES IN ARREARS
10 McCrae Street, Garran
29 Gilmore Crescent, Garran
2 Chowne Street, Campbell
63 Creswell Street, Campbell
48 Summerland Circuit, Kambah
36 Waratah Street, O'Connor
16 Longford Street, Lyons
Unit 6, 6 Marrawah Street, Lyons
Unit 34, 53 McMillan Crescent, Griffith
37 Norman Fisher Circuit, Bruce
Unit 7, 31 Moulden Court, Belconnen
Unit 16, 153 Murranji Street, Hawker
29 Dumas Street, Mckellar
11 Sleigh Place, Hume
2 Francis Street, Yarralumla
12 Dumaresq Street, Dickson

Mr Salisbury also said he would apply for an order to sell the sites if the debts remained unpaid in a year's time.

He did not say how much the landlords owed, but the 15 residential properties' annual rates and land tax bills range from about $3000 to $10,000.

ACT shadow treasurer Brendan Smyth questioned the decision to identify the addresses and urged the government to use the power sparingly.

"People should always pay their taxes on time and assist the community through the paying of reasonable taxes but I'd like to be assured that the government has done everything within its power to recoup these taxes before going on a naming-and-shaming exercise on what look predominantly to be residential leases," he said.

Mr Smyth hoped Mr Salisbury would "use this power judiciously and study the effect over time".

The Revenue Commissioner said last month his office tried to help people manage their tax debts, especially those in financial hardship, and reminded them regularly when they fell further into arrears.

But he had decided the threat of a forced sale was necessary in some cases.

"The primary intention of this action is not to sell the properties but to recover the arrears where other debt-recovery actions have proven unsuccessful," Mr Salisbury said.

"In many cases, the threat to publish property details and enforce a sale promotes the settlement of the debt."

The Treasurer, Andrew Barr, said it was appropriate that, "in some circumstances, the commissioner needs to pursue this avenue in order to assist in recovering long-term debts".