Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 122: To ask the Minister for Finance the position regarding an application for a tax rebate in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [4502/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I have been advised by the Revenue Commissioners that they have no record of receipt of an application for a tax rebate from the person concerned. They are writing to the person concerned in relation to the matter and on receipt of a reply necessary reviews will be carried out and any tax overpaid will be refunded.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 123: To ask the Minister for Finance if he will address a query regarding the taxation of an investment (details supplied). [4523/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Under the gross roll-up regime introduced in Finance Act 2000, investments in life assurance policies may accumulate without the imposition of tax. However, an exit tax applies to the income or gains arising when a chargeable event occurs, such as the receipt of payments from, or the disposal of investments in a life policy, or the ending of each 8-year period following the acquisition of that policy (i.e. a deemed disposal). The rate of exit tax applying depends on when the chargeable event, including a deemed disposal, occurs. The exit tax up to 1 January 2009 was the standard rate of income tax (20%) plus 3% i.e. 23%, which increased to 26% (20% +6%) from January 2009 until 8 April 2009 when the rate was further increased to 28%. The Finance Bill 2011 provides for a rate of 30% to apply from 1 January 2011.

I am advised by the Revenue Commissioners that it is unclear from the documentation provided whether the policy in question was encashed before the first guarantee date of 22 February 2009. However, the above information should be of assistance as regards the exit tax applying on any chargeable event arising. The Revenue Commissioners have also advised that, on receipt of documentation issued by the insurance company outlining any tax deducted, further clarification will be provided.