Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 259: To ask the Minister for Finance if, when a person reaches the age of 65, they are able to reclaim DIRT tax; and if he will make a statement on the matter. [4265/07]

Paul Kehoe (Wexford, Fine Gael)
Link to this: Individually | In context

Question 269: To ask the Minister for Finance the changes made to the taking of DIRT to persons of pension age; and if he will make a statement on the matter. [3641/07]

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

I propose to take Questions Nos. 259 and 269 together.

The Taxes Consolidation Act 1997 provides for the levying of DIRT on certain interest paid or credited on deposits held with banks, building societies and certain other financial institutions including Credit Unions. Subject to certain statutory exceptions, financial institutions are required to deduct the tax from interest paid or credited in respect of the income on deposit.

However, individuals aged 65 years or over and individuals who are permanently incapacitated by reason of mental or physical infirmity from maintaining themselves, can claim a refund from DIRT where the income of the individual (inclusive of the deposit interest) is below the appropriate income exemption limit for tax purposes. In the 2007 tax year the exemption limit for a single person aged 65 or over is €19,000 per annum, and in the case of a married couple, the exemption limit is €38,000 (the equivalent limits for the 2006 tax year were €17,000 single/ €34,000 married). A partial refund may be due to such individuals whose income (inclusive of the deposit interest) does not greatly exceed the appropriate income exemption limit.

In the recent Budget, I announced changes to the DIRT refund scheme. The rules are being changed so that in future interest can be received without deduction of DIRT. Qualifying elderly individuals will be able to advise their financial institution of their status and receive interest without DIRT. Further details on the operation of this scheme will be issued after the Finance Bill is enacted.