Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Tax Exemptions

Dáil Éireann Debate, Tuesday - 6 March 2018

Tuesday, 6 March 2018

Ceisteanna (51, 52)

Clare Daly

Ceist:

51. Deputy Clare Daly asked the Minister for Finance if exemptions from exit tax are available for persons who are permanently incapacitated due to mental or physical disability. [10492/18]

Amharc ar fhreagra

Clare Daly

Ceist:

52. Deputy Clare Daly asked the Minister for Finance the reason exit tax for wards of court, who are exempt from exit tax, is deducted at source and then refunded rather than an exemption being applied. [10493/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 51 and 52 together.

I am informed by Revenue that the following persons may be entitled to a repayment of life assurance exit tax -

- a permanently incapacitated individual who is exempt from income tax under section 189 of the Taxes Consolidation Act 1997 (“TCA 1997”) in respect of income arising from the investment of compensation payments in respect of personal injuries,

- the trustees of a “qualifying trust” within section 189A TCA 1997 where the life policy is held as part of the trust fund of the qualifying trust, provided that income from the trust or investment returns from the investment of the trust funds is the sole or main income of the incapacitated individual, and

- a thalidomide victim who is exempt from income tax under section 192 TCA 1997 in respect of income from the investment of compensation payments made by the Minister for Health and Children or by the foundation known as Conterganstiftung fur behinderte Menschen. 

The life assurance exit tax will be deducted in the normal manner but the individual or trust may be entitled to a repayment of the exit tax under section 730GA TCA 1997. The same procedure applies for a Ward of Court who is exempt from income tax under section 189 TCA 1997.

In contrast to the above for other exit taxes, such as Deposit Interest Retention Tax (DIRT), persons who are permanently incapacitated or who are trustees of a special trust for permanently incapacitated individuals where the income is exempt from tax can make a declaration to Revenue (Form DE2 2018) that they would be entitled to a refund of the entire amount of DIRT if so deducted. The financial institution on receipt of notification from Revenue that no DIRT is to apply will pay interest without the deduction of DIRT.

Barr
Roinn