Vol. 497 No. 3
122 Mr. N. Ahern asked the Minister for Finance the cost if DIRT was removed from all accounts held by persons aged over 65; if his attention has been drawn to the concern of many elderly people living off investment income on their savings at interest rates on deposits being offered by financial institutions; his views on this matter; if he will offer attractive investment options to elderly people; and if he will make a statement on the matter. [25133/98]
I am informed by the Revenue Commissioners that the latest relevant information refers to some 33,000 individuals aged 65 and over, who were liable to income tax for 1995/96 and were identified as having interest income to which deposit interest retention tax, DIRT, applied. From this data it is estimated that the cost to the Exchequer of this proposal could be of the order of £10 million in a full year.
Regarding the situation of the elderly in relation to DIRT, the over-65's are one of only two categories of individuals entitled to a refund of DIRT if their total income, including interest income, is below their total tax free allowances or as the case may be their income tax exemption thresholds. Concessionary treatment is, therefore, already afforded to these individuals in the administration of DIRT where their incomes falls outside the tax net.
