Clare Daly
Ceist:70 Deputy Clare Daly asked the Minister for Finance the amount of revenue lost through the DIRT free status of An Post investment certificates and bonds. [4631/12]
Amharc ar fhreagraThursday, 26 January 2012
Ceisteanna (75)
Freagraí scríofa
Savings Certificates and Savings Bonds are tax free to Irish residents. Interest is applied on these products at maturity, which is after five and a half years for Savings Certificates and after three years for Savings Bonds, or on encashment, which could be at any stage during the life of the product. Bringing the products within the Deposit Interest Retention Tax (DIRT) regime would lead to an estimated yield of €44m, based on the estimated interest payout on Savings Certificates and Bonds in 2011. The potential yield has been estimated on the basis of applying the higher DIRT rate which applies to interest paid less frequently than annually, as is the case with Savings Certificates and Savings Bonds, rather than the standard DIRT rate which applies to interest paid annually or more frequently than annually. The higher DIRT rate in 2011 was 30%, which was increased to 33% with effect from 1 January 2012.