Richard Bruton (Dublin North Central, Fine Gael)
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Question 197: To ask the Tánaiste and Minister for Finance his views on a claim (details supplied) that the Revenue Commissioners have not fulfilled their obligations as outlined in a reasoned opinion of the European Commission. [12073/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The reasoned opinion which the Deputy refers to was received in January 2007 and it made reference to Sections 71 and 73 of the Taxes Consolidation Act 1997. These provisions relate to the tax treatment of the income arising on an Irish resident from UK sources. The European Commission took the view that these provisions were contrary to the obligations under Article 56EC and Article 40EEA and it directed Ireland to take the necessary measures to comply with the reasoned opinion.

The Commission was subsequently notified that provisions would be included in the 2008 Finance Bill which would address the issues raised. This was done and Section 18 Finance Act 2008 deals with the matter.

Tom Hayes (Tipperary South, Fine Gael)
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Question 198: To ask the Tánaiste and Minister for Finance if trade union subscriptions are credited at source for PAYE workers, or if they need to claim this money back themselves. [12158/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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PAYE workers may claim an income tax allowance in respect of their membership subscription to a registered Trade Union. The amount of the allowance in 2008 is €350 at the standard rate of tax, which is equivalent to a tax credit of €70. This credit, when claimed, is included in the individual's annual certificate of tax credits. Where the tax credit has not been claimed up to now, an individual may claim, in 2008, for each of the tax years 2004 to 2007, inclusive.

Full details on how to claim the credit are available on the Revenue Commissioners' website at www.revenue.ie. There is a variety of self service options available, including claiming on-line or by text message. The Revenue Commissioners can also be contacted on the relevant regional PAYE LoCall number or by calling to the local Revenue office.

Jack Wall (Kildare South, Labour)
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Question 199: To ask the Tánaiste and Minister for Finance if a retired person's total income from investments and pension is such that all such income is less than the person's tax allowances, if the person has tax liability in such an instance (details supplied); and if he will make a statement on the matter. [12221/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that it is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. This includes income received in the form of a social welfare pension and investment income. However, I am informed by the Revenue Commissioners that, based on the limited information supplied, it would appear that the taxpayer's tax credits are sufficient to offset any liability to income tax on his social welfare pension and his income from Irish shares.

Where an individual is in receipt of dividends and other distributions from an Irish resident company, such investment income is liable to dividend withholding tax (DWT) at the standard rate (currently 20%). Such income cannot be paid to an Irish resident individual without deduction of DWT unless the individual is permanently and totally incapacitated from maintaining himself or herself. However, an Irish resident individual who is not liable to income tax, may make a claim for a refund of DWT deducted. Claims should be submitted to an individual's local Revenue office. All refund claims should be accompanied by original dividend vouchers and/or any subsidiary tax certificates.

Deposit interest retention tax (DIRT) is deducted from Irish deposit interest income. Regardless of the amount of tax credits available to a taxpayer, an individual is not entitled to a repayment of DIRT or to have deposit interest paid without deduction of DIRT unless:

the individual or his/her spouse is 65 years of age or over, or

is permanently incapacitated, and

his/her total income (including the gross DIRT income) is less than the relevant income tax exemption limit, or the individual's tax credits exceed his/her tax liability.

It is understood from the details supplied that the taxpayer does not satisfy these conditions.

On reaching the age of 65 and provided the taxpayer's total income for the year is below the annual exemption limit, (currently €20,000 for a single individual aged over 65 and €40,000 for a married couple, one of whom is aged over 65, with increases for qualifying dependent children), the taxpayer may apply directly to his or her financial institution to have interest arising on the investment account payable without deduction of DIRT. The application is made by completion of Form DE1, available from financial institutions, Citizens' Information Centres, Revenue offices, the Revenue website, www.revenue.ie, or by phoning LoCall 1890 306 706.