Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 50: To ask the Tánaiste and Minister for Finance the position regarding measures being proposed with the aim of ensuring that recipients of credit union dividends comply with DIRT legislation in all cases where this is appropriate; if information is available or is being sought from credit unions in relation to non-payment of DIRT at source; if this is carried out on a retrospective basis; and if he will make a statement on the matter. [15624/08]

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

With effect from 1 January 2002, credit unions were required to apply DIRT on certain deposits held by members. Where recipients are in receipt of income that attracts DIRT they have no further tax liabilities in relation to this income as the DIRT liability is the final tax liability. The issue of the correct operation of the DIRT provisions by credit unions is a risk factor which the Revenue Commissioners consider in determining whether to initiate an enquiry or conduct an audit on any credit union. I am advised by the Revenue Commissioners that there is currently no industry-wide audit of the credit unions on the non-operation of DIRT at source.

In addition to enquiring about the compliance with DIRT requirements by credit unions, the Deputy may also be enquiring about the enabling provisions contained in section 891B of the Taxes Consolidation Act 1997 (as inserted by section 125 of the Finance Act 2006) which authorises the Revenue Commissioners, with the consent of the Minister for Finance, to make regulations requiring financial institutions, including credit unions, to make an annual return to Revenue of payments made to customers resident in the State. This provision applies regardless of whether or not DIRT applies in a particular case. Regulations can be made for any period not earlier than 1 January 2005. Officials from my Department and the Revenue Commissioners have had detailed consultations with the various financial institutions on the proposed implementation of these regulations and the outcome of these discussions is now being considered.