Peter Burke (Longford-Westmeath, Fine Gael)
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119. To ask the Minister for Finance if deposit interest retention tax deducted at source can be refunded on foot of charitable donations in line with other tax paid subsequent to the 2013 tax year; and if he will make a statement on the matter. [33599/16]

Michael Noonan (Limerick City, Fine Gael)
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The scheme for tax relief on donations to eligible charities and other approved bodies is provided for in Section 848A of the Taxes Consolidation Act (TCA) 1997.

Following consultation and engagement with the charities sector, the scheme was amended in the 2013 Finance Act in order to reduce administrative costs for donors, charities and the Revenue Commissioners. Under the scheme all individual donations, whether made by a PAYE or self employed taxpayer, are treated similarly. The donation amount is treated as a balance after payment of tax at a notional tax rate of 31% and an amount equal to the notional amount of tax is paid directly to the relevant charity or approved body. This amount is treated as a refund of tax paid by the taxpayer in question and is subject to the taxpayer having paid sufficient tax to meet the refund amount.

The legislation specifically excludes Deposit Interest Retention Tax in computing the amount of tax paid by a donor for these purposes.