Dáil Éireann díospóireacht -
Tuesday, 10 Nov 1998

Vol. 496 No. 3

Written Answers. - DIRT Implications.

Ruairí Quinn

Ceist:

243 Mr. Quinn asked the Minister for Finance the implications of DIRT as it applies to moneys paid into court; the circumstances, if any, in which it can be reclaimed and, in particular, the implications for minors upon coming of age; and if he will make a statement on the matter. [22621/98]

Minister for Finance (Mr. McCreevy)

It is presumed the Deputy is referring to moneys awarded to individuals under court settlements which are placed on deposit in financial institutions obliged to operate the DIRT legislation. I have been advised by the Revenue Commissioners that, where moneys awarded to individuals under court settlements are placed on deposit in financial institutions obliged to operate the DIRT legislation, DIRT at the standard rate of income tax, currently 24 per cent must be deducted by the financial institutions from any interest earned on the deposit and paid over to the commissioners.

Refunds of DIRT to individuals apply in the following circumstances only: where an individual and/or spouse in a tax year is aged 65 or over and has a total income which is below the age exemption limits; where an individual and/or spouse in a tax year is or becomes permanently incapacitated by reason of mental or physical infirmity from maintaining himself-herself and has a total income below the general exemption limit; or where the individual is permanently and totally incapacitated by reason of mental or physical infirmity from maintaining himself or herself without reference to income limits. I have also been advised by the Revenue Commissioners that there are no DIRT implications, including implications for refunds of DIRT, where a minor attains his-her majority.