Written answers

Tuesday, 25 April 2006

Department of Finance

Special Savings Incentive Scheme

9:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 297: To ask the Minister for Finance the taxes and charges which will accrue to an SSIA held to maturity; if such taxes and charges would vary if an SSIA holder had left the State prior to their account reaching maturity but who continued to pay into the account until it reached maturity; and if he will make a statement on the matter. [14665/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Where an SSIA account matures, either on death or at the end of the five-year period, tax at 23% is liable on the income earned from the investment of both the subscriptions and the Exchequer tax credits. For an SSIA account to mature, the account holder must be resident in the State when the SSIA account commenced and be either resident or ordinarily resident in the State for the duration of their SSIA account. Where the individual does not qualify under these residency conditions the individual is required to close the account and the aggregate value of all the assets in the account at time of cessation is liable to tax at 23%.

A person is regarded as resident in the State if he or she has spent 183 days in the State in a calendar year or leaves the State early in the year but has spent more than 30 days in the State in that year and between that year and the previous year has spent a total of at least 280 days in the State. A person is deemed to be ordinarily resident in the State for each of the three years after the year in which he or she was last resident in the State, where he or she was resident in the State for three consecutive years prior to leaving.

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