Dáil Éireann Debate, Thursday - 3 December 2015
102. Deputy Michael McGrath asked the Minister for Finance the number of deposit savings accounts yielding less than €200 in deposit interest retention tax, DIRT; and if he will make a statement on the matter. [43400/15]
View answer103. Deputy Michael McGrath asked the Minister for Finance the average payment of deposit interest retention tax, DIRT, per eligible account in which a DIRT tax liability arose in 2014; and if he will make a statement on the matter. [43401/15]
View answer105. Deputy Michael McGrath asked the Minister for Finance the number of interest paying accounts on which deposit interest retention tax, DIRT, was paid in each year from 2011 to 2014; and if he will make a statement on the matter. [43403/15]
View answerI propose to take Questions Nos. 102, 103 and 105 together.
I am informed by Revenue Commissioners that Deposit Interest Retention Tax (DIRT) on interest bearing deposits is declared and paid on a four-times yearly basis by financial institutions: in April, July and October of the tax year in question, and in the following January. Returns for each year are due by 15 January of the following year, and the total value of DIRT due and paid is reported to the Revenue Commissioners on the January returns at institutional level. Detailed figures are not required in these returns to provide the information the Deputy has sought, specifically to identify the number of deposit-savings accounts yielding less than €200 in DIRT, the average payment of DIRT per eligible account or the total number of interest paying accounts on which DIRT was paid.
However, the Deputy may be interested to note that, separately, under regulations as provided for in Section 891B of the Taxes Consolidation Act 1997, certain financial institutions, such as banks and credit unions, are required to make automatic annual returns at account level electronically to Revenue. The primary purpose of this Section is to provide information for use in risk analysis by Revenue and therefore the requirement to report interest focuses on account holders in receipt of larger payments. The information under S891B is provided where the payment of interest is greater than €635 in a year and in all instances of a first interest payment on newly opened accounts irrespective of amount. These returns include DIRT exempt accounts. Returns for 2011, 2012, 2013, and 2014 were due by the end of March 2012, 2013, 2014 and 2015 respectively. It is important to note the information received under Section 891B is not limited to individuals but also includes interest payments on accounts held by corporations and other entities. It should also be noted that the reporting threshold was reduced from €635 to €300 from 2014 onwards.
The number of interest bearing deposit accounts reported under the S891B regulations for 2011, 2012, 2013 and 2014 is 1.43 million, 1.23 million, 1.21 million and 1.32 million respectively. The total value of interest paid to these accounts for 2011, 2012, 2013 and 2014 is €2.42 billion, €2.11 billion, €1.97 billion and €1.38 billion respectively. Financial institutions reported that DIRT was not deducted on around 193,000, 197,300, 201,400 and 163,300 of these accounts for 2011, 2012, 2013 and 2014 respectively but data on the amount of DIRT forgone in respect of such accounts are not available. These figures are provisional and may be subject to revision.
