asked the Minister for Finance the income tax rate paid by building societies on investments.
Ceisteanna—Questions. Oral Answers. - Building Societies Tax Rate.
94.
It is assumed that the Deputy has in mind investments made by the general public with building societies.
As regards the amount distributed as interest to these investors, all the Irish societies have voluntarily entered into an administrative arrangement with the Revenue Commissioners under which each society pays income tax at an agreed composite rate-at present 70 per cent of the standard rate of 35p in the £-on distributions to individual investors whose investments do not exceed £5,000. This composite rate is designed to produce the same amount of tax as if there had been no arrangement and both the society and those investors were charged to tax on the statutory basis and investors claimed repayment from the Revenue Commissioners of whatever income tax might be repayable to them. On distributions to other investors the society pays tax at the standard rate.
On 23rd March last, as the Minister for Local Government has said this afternoon, the Government decided that the special arrangement would henceforth be available only to societies which charge a rate of interest on house purchase loans that does not exceed a rate specified for the time being by the Minister for Local Government.