Form 11 Technical query

Baby4

This post has been deleted.

Mr. Incognito

How can you be exempt from deposit and rental income?? unless you are non-resident in which case you cannot claim any credits.

The point of claiming back dirt as a credit is that where the gross deposit interest falls into the scope to tax and you get a 20% credit for DIRT already paid not that you are entitled to a refund of DIRT. i.e if €100 bucks deposit interes €20 has been deducted at source by the banks and paid to the Revenue- you get a credit for this so the €100 is not taxed twice. If the deposit interest is exempt (which i am dubious about) you get no credit.

mkdon05

You could be exempt from DIRT if you are over 65 or permanently incapacitated, and exempt from rental income if it is in their private residence and below the threshold.


http://www.revenue.ie/index.htm?/press/pr_100407.htm

It would seem from the above link that an application should have been made to the bank regarding the deduction of DIRT and not the revenue, unlike previous years.

Baby4

This post has been deleted.

Mr. Incognito

Okay- I've had a look.

TCA S 267 deals with the refunds and states such persons may only recieve a refund of DIRT deducted where their credits exceed their tax liability.

check this first.

If it is the case that their credits exceed their liability by the amount of DIRT deducted I'd insert the Gross amount on which DIRT was deducted on page 14 of the Form 11 (Box A4) and paper file the return. I would then submit a letter/ fax to their local district explaining the situation and claiming the refund under S 267.

You can also write a letter to the bank requesting that DIRT not be deducted in future.