Dáil Éireann Debate, Tuesday - 14 February 2012
165 Deputy Jim Daly asked the Minister for Finance if it is possible for a person that has a savings account designated exempt from deposit interest retention tax to apply for a refund of tax deducted previous to the date the exemption was granted; and if he will make a statement on the matter. [7955/12]
View answerI am informed by the Revenue Commissioners that an individual who qualifies for exemption from Deposit Interest Retention Tax (DIRT) may apply for a refund of tax deducted prior to the date the exemption was granted, if he or she fulfilled the conditions for granting the exemption at the time the DIRT was deducted. The conditions for granting exemption from DIRT are:
1. the individual (or his or her spouse or civil partner) is aged 65 or over during the year and their gross income from all sources (e.g., old age pension, deposit interest etc) is less than:
(a) €18,000 (or €36,000 in the case of a married couple / civil partnerships) for the 2011 tax year, or
(b) €20,000 (or €40,000 in the case of a married couple) for the 2008, 2009 and 2010 tax years.
2. the individual (or his/her spouse or civil partner) is permanently incapacitated by physical or mental infirmity from maintaining himself or herself and he or she (and his/her spouse or civil partner) would be entitled to a full refund of DIRT if their tax credits exceed any tax payable (including DIRT) for the tax year. The claim for a refund of DIRT should made by submitting a Form 54 Claims for the relevant year to the individual’s local tax office. Refunds of DIRT are covered by the overall four-year time limit that applies to tax refund claims.
166 Deputy Pearse Doherty asked the Minister for Finance the potential amount that could be raised for the Exchequer by removing the current capital gains tax exemption for disposal of a site to a child. [7972/12]
View answerI am informed by the Revenue Commissioners that, as information on the value of the gain arising from the disposal of a site to a child is not required in capital gains tax returns, there is no dedicated basis for separately identifying the potential amount that could be raised for the Exchequer by removing the current exemption. However, on the basis of indicative information on the relevant tax returns, it is unlikely that the yield would exceed €1 million in a full year.
167 Deputy Pearse Doherty asked the Minister for Finance if he has examined the issue of placing a cap on the disposal of a business or farm on retirement and within families. [7973/12]
View answerIn Budget 2012 I announced a modification of retirement relief from Capital Gains Tax (CGT) to encourage timely transfer of farms and businesses. Disposals of farm or business assets within families will continue to be fully relieved from CGT where the transferor is aged between 55 and 65 years. Where the transferor is aged 66 or over, the relief will apply subject to an upper limit of €3 million on the value of the assets. For such disposals outside families, the current upper limit of €750,000 will continue to apply where the transferor is aged between 55 and 65 years; where the transferor is aged 66 or over, the upper limit will be €500,000. Individuals who are currently aged 66 years or who reach age 66 between now and the end of 2013 can continue to avail of the current regime (that is, no limit for intra-family transfers and €750,000 for transfers outside the family) until 31 December 2013. The Finance Bill 2012, being introduced to the Dáil today, will give effect to these measures.
