Written answers

Tuesday, 20 November 2012

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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To ask the Minister for Finance the date on which the 65 year limit for DIRTexemption was introduced; when did the exemption become automatic other than be subject to an application for a refund. [51268/12]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Finance the date on which the DIRT exemption for those over 65 years of age was introduced; and if he will make a statement on the matter. [51407/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 211 and 223 together.

I am informed by the Revenue Commissioners that, from the time Deposit Interest Retention Tax (DIRT) was first introduced in the tax year ended 5 April 1987, where an individual or their spouse was aged over 65, they were exempt from DIRT where their total annual income did not exceed the exemption limit. In such cases the individual was entitled to apply to the Revenue Commissioners for a refund of the DIRT deducted from the deposit interest paid.

In April 2007, this exemption became automatic (i.e., the interest is paid gross by the financial institution) on the submission of a declaration to the financial institution where the account is held. To qualify for the automatic exemption, the individual must declare on form DE1 that they or their spouse or civil partner are aged 65 years or over during the year and—

1. in the case of an individual who is single, his or her total annual income does not exceed the current exemption limit of €18,000, or

2. in the case of an individual who is married or in a civil partnership, the joint total annual income of the individual and his or her spouse or civil partner does not exceed €36,000.

Where the individual’s circumstances change following the submission of this declaration form, they are required to notify the financial institution to that effect.

Where a person’s income exceeds the relevant exemption limit by a small amount, he or she will not be entitled to the exemption but may be entitled to a partial refund of the tax deducted.

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