Fergus O'Dowd
Question:73. Deputy Fergus O'Dowd asked the Minister for Finance why savings accounts in the name of children are subject to deposit interest retention tax; and if he will make a statement on the matter. [3571/16]
View answerThursday, 28 January 2016
Questions (73)
Written answers
Under Section 257 of the Taxes Consolidation Act 1997 all deposit takers are obliged to deduct Deposit Interest Retention Tax (DIRT) from payments of interest made to an account unless the account qualifies as an exempt account. There is no specific exemption in the case of interest paid on deposit accounts held by children. Such a provision could be difficult and costly to administer, from the point of view of establishing who the beneficial owner of the account is.
The wider tax code does not provide for an exemption from tax for children. Children could be liable to a range of taxes. Not many children have an income that exceeds the relevant thresholds, but those that do are taxable on it.
There are alternative savings products, offered by the National Treasury Management Agency through An Post, which are tax free, subject to certain conditions.