I propose to take Questions Nos. 126 and 127 together.
I have been informed by the Revenue Commissioners that deposit interest retention tax (DIRT) at the rate of 23%, or 20% up to 31 December 2008, is deducted at source by deposit takers — for example, banks, building societies, credit unions, and post offices — from interest paid or credited on deposits of Irish residents. The gross interest derived from a general deposit account is treated as reckonable income for the purposes of self-employed PRSI and the health contribution.
The most recent tax return received by the Revenue Commissioners from the person in question was for tax year 2007. The DIRT deducted at source from the deposit interest income has been allowed for by way of a tax credit on the notice of assessment that has issued to the person in question for 2007. The net effect of this is that the interest has not been taxed twice.
The person concerned has been allowed all tax credits appropriate to her 2007 tax return, based on the information supplied.