Dáil Éireann Debate, Tuesday - 27 January 2015
215. Deputy Mary Mitchell O'Connor asked the Minister for Finance the reason under 18 year old persons who have a savings bank account must pay 41% DIRT tax on their savings interest; and if he will make a statement on the matter. [3786/15]
Amharc ar fhreagraUnder Section 257 of the Taxes Consolidation Act 1997 all deposit takers are obliged to deduct Deposit Interest Retention Tax (DIRT) from payments of interest made to an account unless the account qualifies as an exempt account. There is no specific exemption in the case of interest paid on deposit accounts held by children.
The wider tax code does not provide for an exemption from tax for children. Children could be liable to a range of taxes. Not many children have an income that exceeds the relevant thresholds, but those that do are taxable on it.
To provide an exemption from DIRT to children's accounts could be difficult to administer, from the point of view of establishing the beneficial ownership of the account.
A number of State Savings Products offered by the National Treasury Management Agency through An Post are tax free, subject to certain conditions.
