Dáil Éireann Debate, Monday - 11 September 2017
109. Deputy Pearse Doherty asked the Minister for Finance the way in which windfalls gained through Central Bank mandated redress schemes such as for tracker mortgages are treated for the purposes of income tax; and if he will make a statement on the matter. [37055/17]
View answerI understand that the Central Bank has clearly set out its expectations of lenders to provide appropriate redress and compensation to affected customers in its document “Principles for Redress” dated December, 2015.
The principles provide, inter alia, that “Any tax liability that impacted customers may incur as a result of the relevant issue in or respect of any redress, compensation or other payment made to impacted customers are to be discharged by the lender. The lender is to liaise directly with Revenue in this regard”.
The Principles of Redress provide for a number of different classes of redress payments depending on the harm suffered by individual borrowers. The question of whether a tax liability arises in any given case depends on the specific issues to be redressed and the facts and circumstances of that particular case.
I am advised by Revenue that a number of lending agencies are liaising with them in order to identify any tax liabilities owing and to discharge same.
