John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Question 217: To ask the Minister for Finance the tax take from DIRT tax in 2004 and 2005; if there is an analysis of the size of accounts or age of account holders; if tax take from accounts under €100,000 is known or can be estimated; if tax take from accounts under €100,000 held by pensioners can be estimated; and if DIRT can be abolished in total or part as it is adding to the disincentive to save due to the fact that interest rates are below the rate of inflation. [27176/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that the net yield from DIRT collected in 2004 and 2005 was €144 million and €167 million respectively.

The amount of DIRT due to be paid each year is dependent on the amount of monies on deposit and the rates of interest applying to such deposits rather than on the number of accounts involved. I am informed by the Revenue Commissioners that the statutory return of DIRT filed by the financial institutions requires details only of the relevant amount of interest paid in the year and the appropriate tax in relation to the payment of that interest. There is, therefore, no basis for compiling the information requested in relation to the yield by size of accounts, by ages of account holders or by reference to account holders who are pensioners.

A refund of deposit interest retention tax is provided for where an individual is not liable or fully liable to income tax and is over 65 years of age at some time during the tax year or is permanently incapacitated by reason of mental /physical infirmity from maintaining himself or herself. (Bodies qualifying for 'charitable' status and companies are also entitled to refund of DIRT). The taxpayer must advise Revenue that he or she meets the legislative requirements and the amount of the retention tax suffered. I am informed by the Revenue Commissioners that the total amount of DIRT repaid in 2005 was €2.3 million and the number of such repayments was 971.With deposit interest rates being very low in recent years, the quantum of the interest earned and tax retained would be very small in many cases and may be considered uneconomic to reclaim.

I have no plans to make changes to the DIRT system.