Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 191: To ask the Tánaiste and Minister for Finance the number of people and accounts liable to paying DIRT for each of the years 2002 to 2007; the number who received refunds; the amount of same; the number of people he estimates may be entitled to refunds; the number who claim; if his Department is making arrangements to encourage people entitled to refunds to claim them; and if he will make a statement on the matter. [5389/08]

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

Up to 2006, DIRT was deducted from a customer's deposit interest regardless of whether or not the customer was actually liable to tax. At the end of the year some account holders, provided they met certain conditions, were entitled to claim a refund from Revenue of any DIRT deducted during the year.

I am advised by the Revenue Commissioners that the statutory return of DIRT filed by the financial institutions does not require details of the number of accounts subject to DIRT and Revenue has no solid basis on which to estimate the numbers entitled to refunds. However, the number of people claiming refunds and the amounts for the years 2002 — 2007 is summarised in the table hereunder. This may not include some taxpayers whose DIRT refunds were processed as part of a self-assessment tax return.

The Finance Act 2007 introduced a new scheme to allow the operation of DIRT exempt savings accounts subject to two conditions: (1) the account holder must be aged 65 years of age or over or be permanently incapacitated and (2) their total income must not exceed the relevant exemption threshold, i.e. the exemption limit for an elderly couple in 2008 is €20,000 (for an individual) or €40,000 (for a married couple); the limit available to permanently incapacitated individuals depends on their circumstances. Provisional figures show that in 2007 some 47,218 such accounts were operated. These figures will increase as the remaining financial institutions file returns for 2007.

Revenue widely publicised these changes. An Information Leaflet (DE1) giving comprehensive information for qualifying taxpayers on how to have interest credited to their savings accounts without deduction of DIRT was made available at Revenue offices. Information on DIRT exemption was also included on the Revenue website at www.revenue.ie. Application forms and information leaflets were also made available at most financial institutions.

In 2007 Revenue arranged for an information leaflet to be issued to social welfare customers in receipt of state and other pensions. Approximately 100,000 leaflets were issued in this way. Revenue will continue to publicise the facility offered by the accounts through appropriate channels, including contact with representative bodies, other Government Departments and agencies, and relevant advertising.