Vol. 395 No. 5
20 Mr. J. Bruton asked the Minister for Finance the number of persons who have received refunds of deposit interest retention tax on the basis that they are over 66 years of age in the most recent financial year for which figures are available; and if he has any estimate of the number who would be eligible to receive such relief, but are not actually receiving if for lack of making a claim.
I am informed by the Revenue Commissioners that the available statistics on refunds of deposit interest retention tax do not distinguish between refunds made to approved charities, those made to individuals aged 65 or over and those made to incapacitated individuals. The total number of cases in which such refunds were made during the course of 1989 was approximately 18,000; the vast bulk of these are likely to have been individuals aged 65 years or over.
The Commissioners have no statistics as to the number of individuals aged 65 years or over who are eligible for a refund of retention tax but have not lodged a claim. I would point out that individuals aged 65 years or over are only entitled to a refund of the tax to the extent that they are not otherwise liable to tax on the relevant deposit interest. I would also point out that, where it becomes apparent in the course of administration of the tax system, for example when a taxpayer's affairs are being reviewed, that he is entitled to a refund of retention tax, this would be given as part of the general review without the need for a special claim. Ultimately, of course, the responsibility for ensuring that his tax affairs are in order lies with the taxpayer.
The Revenue Commissioners plan an advertising campaign to coincide with the end of the current income tax year which will provide information about the circumstances in which individuals are entitled to repayment of retention tax and how claims should be made. The Commissioners also plan to establish a system of issuing reminders in future years to persons who make successful refund applications after 5 April 1990.
(Limerick East): Has the Minister considered giving rebates of deposit interest retention tax to people under 65 years who do not have an income tax liability and has he estimated the cost of such an amendment? Would the Minister consider introducing such an amendment in the forthcoming Finance Bill if it does not cost very much?
I will find out the cost and transmit the information to the Deputy. I am sure we will hear more about it during the course of the Finance Bill.
(Limerick East): The Minister must have had a look at this in the run up to the budget.
I had a look at everything in the run up to the budget but I would not remember everything now.
(Limerick East): Is there any chance that the Minister might do this?
I will have a look at the cost of it.
While welcoming the Minister's stated intention of having an advertising campaign at the end of the financial year to inform people of their entitlement to the refund, would he consider asking the banks and lending institutions to put in notices when they send out their accounts to the various depositors giving details of the categories of people who may be entitled to claim refunds of the deposit interest retention tax which has been deducted from their accounts?
I will gladly make that suggestion to the financial institutions.
