Kathleen Lynch (Cork North Central, Labour)
Link to this: Individually | In context

Question 85: To ask the Tánaiste and Minister for Finance if he will introduce legislation requiring banks and financial institutions to inform customers on an annual basis of the amount of DIRT tax deducted from their account; if he will provide information for those who claim DIRT tax on the way to do so; and if he will make a statement on the matter. [7715/08]

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

Section 262 of the Taxes Consolidation Act 1997 already provides that a financial institution must, following a depositor's request, provide a statement to the depositor showing the gross amount of any relevant interest paid or credited to the depositor, the DIRT deducted, the net payment and the date of that payment. I have no plans to amend this legislative provision at this time.

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) the account holder's 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.