Paul McGrath (Westmeath, Fine Gael)
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Question 187: To ask the Minister for Finance if, regarding SSIA accounts, an account holder is obliged to complete a disclosure notice three months prior to the maturity of such accounts or else incur additional tax charges; and if he will make a statement on the matter. [9242/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The special savings incentive accounts scheme commenced in May 2001 and entry to the scheme closed in April 2002. The scheme is a five-year savings scheme in which the Exchequer tops up, by way of a tax credit, subscriptions by an individual to his or her SSIA. The accounts mature at the end of the five-year period and, provided the individual saver complies with certain conditions laid down in the legislation governing the scheme, the only tax liability, which the account will attract, will be a once-off tax at 23% on the profit earned from the investment both of the subscriptions and of the Exchequer tax credit. Where an individual fails to comply with the conditions of the scheme the SSIA is treated as ceasing and all the money in the account is taxed at 23%.

One of the conditions contained in the SSIA legislation is that, in order for an account to be matured, the account holder must make a maturity declaration on form SSIA4 to his or her financial institution at any time within a period of three months ending on the maturity date. These maturity dates will arise at the end of each month during the period from the end of May 2006 to the end of April 2007. The saver must declare that at all times in the period from the date on which his or her SSIA started until the date the declaration is made, he or she: was the beneficial owner of the assets in the SSIA; had only one SSIA; was resident or ordinarily resident in the State; subscribed to the SSIA from funds available to him or her, or his or her spouse without recourse to borrowings, or the deferral of repayment, whether of capital or interest, of sums borrowed when the SSIA started; and did not assign or otherwise pledge SSIA assets as security for a loan.

The Revenue Commissioners have informed me that they are consulting with financial institutions to ensure that the above maturity arrangements during 2006 and 2007 will be implemented in an efficient and practical manner. They have also advised me that each financial institution will, at the appropriate time, supply the SSIA4 declaration to each of its SSIA holders for completion and return to it within the relevant timeframe.