Richard Bruton (Dublin North Central, Fine Gael)
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Question 278: To ask the Minister for Finance the value of tax revenue raised by DIRT and the number of accounts; the amount refunded to persons over 65 not in the tax net and the relevant number of accounts; and the cost of applying tax only to the earnings in interest which exceeds the rate of inflation. [35229/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the net yield from DIRT collected in 2005 was €167 million.

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 number of accounts, either by reference to all account holders or to those aged over 65 years.

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.

As regards the cost of applying DIRT only to deposit interest which exceeds the rate of inflation, it is not possible to provide a costing due to the multiplicity of rates that are offered by Financial Institutions.