asked the Minister for Finance if he is aware of the deduction of £139 DIRT tax from the quarterly deposit interest payment of £441 to a person (details supplied) in County Galway; and when he proposes to pay a tax rebate to her, whose only source of income is her deposit interest.
Written Answers. - Retention Tax Scheme.
145.
The Revenue Commissioner have advised me that the taxpayer is aged over 75 years and, by virtue of age exemption, was not liable to income tax for the year 1985-86. Under the statutory provisions relating to the retention tax scheme the taxpayer would be entitled, after the end of the tax year, to submit a claim for repayment of the retention tax suffered. To enable the inspector of taxes to establish the liability, if any, to tax, a return of income, together with a statement from the bank or building society of the amount of interest paid and the retention tax deducted, should be lodged with the tax office after 5 April next.
The inspector of taxes will issue the necessary return of income form to the taxpayer for completion in due course.
146.
asked the Minister for Finance when he proposes to make application forms for rebates of DIRT tax available; his views on the severe hardship being caused to old age pensioners whose only source of income is deposit interest; and the arrangements he has made for the immediate rebate of this tax.
I have been advised by the Revenue Commissioners that it is not proposed to introduce a special form of application to enable taxpayers to claim repayments of retention tax. Claimants will be required, after the end of the relevant tax year, to complete the normal return of income form and this should be accompanied by a statement, which will be provided on request by the bank, building society etc. of the deposit interest paid and retention tax deducted. Return of incomes forms may be obtained on request from the local tax office.
The administrative arrangements for repayments will be reviewed in the light of experience with the first year of the tax.