Dáil Éireann díospóireacht -
Tuesday, 12 Nov 1991

Vol. 412 No. 5

Written Answers. - DIRT Payments.

Michael Moynihan

Ceist:

25 Mr. Moynihan asked the Minister for Finance if he will investigate the desirability of having old age pensioners exempted from deposit interest retention tax in view of the problems so many pensioners experience in making application for refunds; and if he will make a statement on the matter.

Minister for Finance (The Taoiseach)

As the Deputy is aware the Finance Act, 1986 provides for repayment, after the end of the tax year, of deposit interest retention tax deducted from incapacitated persons and persons aged 65 years or over, to the extent that they would not otherwise be liable to tax on the relevant interest. These are the only two classes of individuals who are entitled to a refund of DIRT and I do not accept that there is a need to exempt them when they can reclaim the tax. These arrangements have remained unchanged since DIRT was introduced in 1986.

I have been informed by the Revenue Commissioners that, at present, there are no outstanding claims for the repayment of DIRT. Indeed, they have gone to some length to try to accommodate those entitled to refunds. They have run advertising campaigns to inform taxpayers of the availability of refunds. In addition, each year, a refund form is automatically sent to all those over 65. I am satisfied that these arrangements are working smoothly and keeping delays to a minimum.

However, if the Deputy is aware of any specific cases that are causing problems perhaps he could supply some details to my officials or to officials of the Revenue Commissioners who could then investigate and report to me if ther is a genuine problem.

I would also point out that there are a number of investment options to which retention tax does not apply, such as credit union interest, and the interest and bonus payments on the small savers schemes operated by An Post — savings bonds, savings certificates and national instalment savings. In addition, the retention tax rate, which is the same as the standard rate of income tax, has been reduced from 35 per cent when the tax was introduced in 1986 to 29 per cent for this current tax year. It is the Government's intention to reduce this rate further over the next two budgets.