Dáil Éireann debate -
Thursday, 23 Jun 1994

Vol. 444 No. 3

Written Answers. - Deposit Interest Retention Tax.

Noel Ahern

Question:

60 Mr. N. Ahern asked the Minister for Finance the categories of people who can claim back DIRT tax paid on savings accounts; and the procedure involved for reclaiming in view of the fact that many pensioners seem to have difficulty finalising their claims.

Minister for Finance (Mr. B. Ahern)

Deposit interest retention tax is deductible at source on all deposit interest savings accounts. The rates of retention tax are 10 per cent on interest paid on special savings accounts and 27 per cent on interest paid on ordinary deposit accounts. Certain categories such as companies, pension funds, registered charities and non-resident persons may, on completion of the appropriate declaration, receive such interest without deduction of tax.

The legislation also provides for the repayment of this tax where:—

(a) an individual or spouse is 65 years of age or over, or

(b) an individual or spouse is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself.

In either case repayment of the retention tax is only possible where the deduction of tax exceeds the person's tax liability for the year.

The claim for refund forms part of the normal income tax return though the Revenue Commissioners have introduced a simplified form 54D for individuals whose income is clearly low enough. The form 54D is available from the individual's own tax office or from the Inspector of Taxes, Claims Section (DIRT Unit). The income tax return form or form 54D should, when completed, be returned to the individual's Inspector of Taxes. Certificates of deposit interest paid to the individual should accompany the relevant form.

Since a press and radio advertisement campaign undertaken in April, 1990 the Revenue Commissioners have maintained a computerised record of all individuals who qualify for refunds and those individuals are automatically issued with claim forms in advance of the end of the tax year in order to facilitate the following year's claim — these forms were issued on 24 March this year. Revenue's information leaflet on deposit interest retention tax was redesigned in 1992 to place greater emphasis on the categories of persons entitled to refunds. This leaflet is available in all tax offices and is distributed at all shows and seminars where the Commissioners have a presence. I am informed by the Revenue Commissioners that they are not aware of any difficulties or delays in finalising claims for refunds of deposit interest retention tax. Tax Offices endeavour to make retention tax refunds within a maximum of 6-8 weeks. If, however, the Deputy is aware of specific cases where delays have occurred I will have them investigated on receipt of the necessary details.