John Perry (Sligo-Leitrim, Fine Gael)
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Question 93: To ask the Minister for Finance if his attention has been drawn to the fact that persons holding an SSIA account have to ask their bank for a disclosure notice three months before the savings term ends; the steps which will be taken to notify all account holders of this regulation; and if he will make a statement on the matter. [9917/05]

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 of 23% on the profit earned from the investment both of the subscriptions and of the Exchequer tax credit.

Where savers fail 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 mature, account holders must make a maturity declaration, called an SSIA4, to their 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 31 May 2006 to 30 April 2007.

The savers must declare that at all times in the period from the date on which their SSIA started until the date the declaration is made, they were the beneficial owner of the assets in the SSIA; had only one SSIA; were resident or ordinarily resident in the State; subscribed to the SSIA from funds available to them, or their 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 currently consulting with financial institutions to ensure that the above maturity arrangements are implemented in an efficient and practical manner during 2006 and 2007. They have also advised that all financial institutions will, at the appropriate time, supply the SSIA4 declaration to each of their SSIA holders for completion and return to them within the relevant timeframe and, consequently, account holders will not have to initiate contact with their savings manager in this regard.