Brendan Griffin (Kerry South, Fine Gael)
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64. To ask the Minister for Finance if he will consider putting in place a DIRT free limit per person on small savings; and if he will make a statement on the matter. [45381/13]

Michael Noonan (Limerick City, Fine Gael)
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I have no plans to put in place a Deposit Interest Retention Tax (DIRT) free limit on savings. Such a measure could be difficult to administer in the event of individuals opening a number of accounts to keep the interest payment on individual accounts below a certain level. This happened prior to the introduction of DIRT to avoid the provision that interest payments above a threshold were reported to Revenue. Such an exemption would also affect the yield projection from the proposed DIRT increase. It is not possible to forego this income given current budgetary constraints.

Brendan Griffin (Kerry South, Fine Gael)
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65. To ask the Minister for Finance if he is concerned that the DIRT increase would impact on persons who have savings put away for major life phases such as college or nursing home care; if he will examine ways of exempting such cases; and if he will make a statement on the matter. [45382/13]

Michael Noonan (Limerick City, Fine Gael)
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As I announced in Budget 2014, the rate of Deposit Interest Retention Tax (DIRT), and the rates of exit tax that apply to payments from life assurance policies and investment funds, are being increased and will now be 41% whether payments are made annually or more frequently (previously 33%) or are made less frequently than annually (previously 36%). The increased rates will apply to payments, including deemed payments, made on or after 1 January 2014. DIRT and exit taxes are deducted only from the interest or return from savings and investments; they are not deducted from the principal sum invested.

In certain cases, deposit interest can be paid without deduction of DIRT or individuals can get a refund of DIRT deducted. These cases are:

- Individuals aged over 65 years:Since the enactment of the Finance Act 2007, individuals can have their interest paid without deduction of DIRT, or can have a refund of DIRT deducted, provided they or their spouse or civil partner are aged 65 years or over, and their total income in a year, including the interest, is below the relevant annual exemption limit. The limits for 2014, are €18,000 for single or widowed persons or surviving civil partners, and €36,000 for married couples and civil partners;

- Permanently incapacitated individuals: an exemption from DIRT also applies where an individual, his or her spouse or civil partner:

(i) is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself and

(ii) is not liable to pay income tax because of the level of his or her income.

These exemptions may benefit some of the people mentioned by the Deputy in his question. I have no plans to widen the exemptions or reliefs from DIRT.