Revenue Note for Guidance

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Revenue Note for Guidance

263A Declarations to a relevant deposit taker relating to deposits of certain persons

Summary

This section provides for a form of declaration in respect of deposits beneficially owned by individuals who, or whose spouse or civil partner, is 65 years or over and the total income of the individual(s) for that year of assessment does not exceed the relevant exemption limit. This is sent directly to the financial institution who may then pay interest on such deposits without deduction of DIRT. The section supplements paragraph (i) of the definition of “relevant deposit” in section 256(1) and also section 256(1A).

Details

Declarations

A financial institution cannot treat a deposit beneficially owned by an individual under subsection (1A) of section 256 as not being a “relevant deposit” unless the required declaration is received, otherwise DIRT must be deducted at source on interest paid or credited on the deposit.

The required declaration must be made in writing to a relevant deposit taker and must —

  • (a) be made by an individual to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker,
  • (b) be made in such form as may be prescribed, authorised or approved by the Revenue Commissioners. This allows for the submission of declarations electronically,
  • (c) declare that at the time the declaration is made —
    • the individual beneficially entitled to the interest in relation to the deposit or his or her spouse or civil partner is 65 years of age or over, and
    • the total income of the individual for the year of assessment for which the declaration is made will not exceed the relevant income tax exemption limit (within the meaning of section 188(2)) for that individual,
  • (d) contain as respects the individual, or as the case may be each of the individuals, mentioned above —
    • the name and address of the individual,
    • the date of birth of the individual who has attained the age of 65, and
    • the individual’s PPS Number (within the meaning of section 891B),
  • (e) contain an undertaking by the declarer that if the individual or, as the case may be, any of the individuals mentioned above no longer satisfies the conditions set out in section 256(1A)(a), the declarer will notify the relevant deposit taker accordingly, and
  • (f) contain such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

Retention of, and examination of, declarations

(g) The rules relating to the retention and examination of declarations are the same as those relating to deposits of non-residents as set out in section 263(2), i.e. financial institutions must keep and retain declarations under this section for the longer of —

  • 6 years, and
  • until 3 years after the account is closed or becomes a relevant deposit (by, for example, a beneficiary changing his/her residence status to Irish resident).

An inspector is authorised to require a financial institution to make available within a specified time all declarations under this section on giving notice in writing to the financial institution.

An inspector is also authorised to examine all declarations so made available by a financial institution and to take extracts from them or copies of them.

Relevant Date: Finance Act 2019