Peadar Tóibín
Ceist:48. Deputy Peadar Tóibín asked the Minister for Finance the amount that could be rasied for the State if interest from savings bonds was not exempt from tax. [42266/12]
Amharc ar fhreagraThursday, 4 October 2012
Ceisteanna (48)
Freagraí scríofa
The interest paid on Savings Bonds has always been tax-free to Irish residents. Interest is applied on maturity, which is after 3 years, or on encashment, which could be at any stage during the life of the Savings Bond. Based on the estimated interest payout on Savings Bonds in 2012 of €146 million, if this was subject to the higher DIRT (Deposit Interest Retention Tax) rate of 33% it would lead to an estimated tax yield in 2012 of some €48 million. The higher 33% rate of DIRT applies when interest is paid less frequently than annually, as is the case with Savings Bonds. The standard DIRT rate of 30% applies to interest paid annually or more frequently than annually and therefore is not appropriate to Savings Bonds which have no annual interest payments and all interest is paid on maturity or encashment.