Róisín Shortall (Dublin North West, Independent)
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To ask the Minister for Finance the position regarding correspondence sent by a person (details supplied) in Dublin 11 to the Revenue Commissioners regarding an application for a refund of DIRT. [51757/12]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Revenue Commissioners that the person concerned submitted an application in August 2012 for a refund of Exit Tax, not DIRT. The Exit Tax was deducted by a life assurance company from a payment made on the maturity of a life policy held by the person and his wife.

In accordance with the provisions of section 730GA of the Taxes Consolidation Act 1997, for the purposes of a claim for exemption from income tax under section 189 of that Act, the amount of the payment made to the policy holder is deemed to be a net amount from the gross equivalent of which income tax at the appropriate rate has been deducted.

However, in order to qualify for a repayment of income tax under section 189 of the Taxes Consolidation Act 1997, certain conditions must be satisfied. Firstly, the payment must be made to or in respect of an individual who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself. Secondly, the payment must be made following the institution of a civil action for damages, or an assessment of a claim for damages by the Personal Injuries Assessment Board, in respect of personal injury giving rise to that mental or physical infirmity, or must derive from the investment of the monies received from such an action or assessment.

The person concerned submitted medical evidence of disability for himself and his wife. However, he doesn’t satisfy the conditions for the exemption under section 189 of the Taxes Consolidation Act 1997, which are very specific. In the circumstances, no refund is due in respect of any Exit Tax related to the payment made to him by the life assurance company on maturity of the life policy held by the person and his wife.