Simon Coveney (Cork South Central, Fine Gael)
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Question 57: To ask the Tánaiste and Minister for Finance if he is satisfied that those entitled to DIRT refund are getting it; and if he has proposals to rectify the apparent under-claiming. [7776/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the Revenue has no solid basis on which to estimate the numbers entitled to refunds of DIRT in excess of those who annually seek and are granted tax refunds.

A refund of deposit interest retention tax is provided for in very limited circumstances only, viz. an individual who 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. With deposit interest rates being relatively low in recent years, the quantum of the interest earned and tax retained would be very small in many cases and it may be considered uneconomic to reclaim.

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.

In Section 34 of the Finance Act 2007, I 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. €19,000 (for an individual) or €38,000 (for a married couple).

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.

In 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. Revenue also 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. Information on the DIRT exemption was also included in Age Action's monthly magazine "Ageing Matters" in June 2007.

During 2008, Revenue will continue to examine a range of channels or means to target the over 65s and it plans to publicise the facility offered by the accounts, including posters in local offices, contact with representative bodies, financial institutions, other Government Departments and agencies, and relevant advertising.