Dáil Éireann díospóireacht -
Tuesday, 2 Dec 2003

Vol. 576 No. 1

Written Answers. - Tax Code.

John Perry

Ceist:

158 Mr. Perry asked the Minister for Finance if his attention has been drawn to the fact that a company (details supplied) is a major employer in Carrick-on-Shannon, County Leitrim, with over 980 employees; if he has received correspondence from it in relation to the implementation of stamp duty on credit cards, which is having a negative impact on its business year; if his attention has further been drawn to the fact that people are now being charged the same duty twice simply due to the fact that they decide to change their credit card provider or if they wish to upgrade to a different type of credit card account with the same service provider; and if he will make a statement on the matter. [28882/03]

Minister for Finance (Mr. McCreevy)

Section 140 of the Finance Act 2003 gave legislative effect to the stamp duty increase from €19 to €40 per annum on credit card accounts. I announced this in the budget for 2003. This section also contains an anti-avoidance provision as, under the previous legislation, the stamp duty on credit cards was in respect of an account maintained by the bank on 1 April. However, people could cancel their cards in a particular manner to avoid the annual charge. In view of this, an anti-avoidance provision was included in the Finance Act 2003 for credit cards to ensure that a stamp duty charge will arise where the account is maintained by the bank at any time during the 12 month period ending on 1 April rather than its being maintained specifically on 1 April. This change is effective where the charge arises after 1 April 2003.

Accordingly, if an individual who has used a card at any time cancels that card after 1 April in a year, a further stamp duty charge of €40 is payable on closure of the account, as the account had been maintained by the financial institution at any time during the year ending on 1 April of the following year. This is consistent with applying a stamp duty charge for a year or part of a year for which the credit card account is held.

I can confirm that representations relating to this matter have been received from the company concerned. There are revenue implications in any change to the current provisions. I will keep this matter under consideration.

Willie Penrose

Ceist:

159 Mr. Penrose asked the Minister for Finance if a person (details supplied) in County Westmeath has been granted correct tax credits; the amount which this person can earn tax free; and if he will make a statement on the matter. [28898/03]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that the income earner has not made a tax return for a number of years and they are not aware that he has any source of income other than a social welfare old age pension. In the circumstances, a certificate of tax credits has not been issued.

Based on the information available at present to the Revenue Commissioners about the income earner, it would appear that he can earn up to €15,000 free of income tax in the current year, the €15,000 being the age exemption limit for a single or widowed person aged 65 or over.

If a certificate of tax credits is required, the income earner should get in touch with the Westmeath-Offaly Revenue District, Government Offices, Pearse Street, Athlone, County Westmeath.