School Deposit account and DIRT

Paddyo

Hi All

Does anyone know if a Deposit accounts controlled by the board of a primary school are exempt from DIRT.

If so, is there anywhere where I can be pointed so that I can show the bank

Thank you
Paddyo

Cookie_Monster

i would not have thought so

http://www.citizensinformation.ie/en/money_and_tax/tax/tax_on_savings_and_investments/deposit_interest_retention_tax.html#l0c5e6

Exemptions and refunds of DIRT

Since 2007, your financial institution can pay your interest on deposits without deducting DIRT. You must apply to have your deposit interest paid without the deduction of DIRT (see 'Where to apply' below).
People over 65

You can get your deposit interest paid without the deduction of DIRT or a DIRT refund, if you are over 65 and your (including your spouse's):

* Your income (including your spouse's income) is below the low exemption limit or
* Your tax liability (including your spouse's) for the year is below your tax credits (including your spouse's) for that year.

In general, joint accounts where one of the account holders is aged 65 or over will only qualify for the refund of DIRT if the other account holder is that person’s spouse.

However, if another person, such as your son or daughter, has the authority to operate your bank account on your behalf, and is named as an account holder for this purpose only, you will continue to qualify for the refund of DIRT provided you are the beneficial owner of the account. In this case, when claiming a refund of DIRT, you must include a declaration that you (not your child) are entitled to all of the interest paid in respect of the deposit.
People with disability

You can get your deposit interest paid without the deduction of DIRT or a DIRT refund, if you are:

* Permanently incapacitated from maintaining yourself and
* Your tax credits (including your spouse's) for the year exceed the tax that would be chargeable on your (and your spouse's) income for the year.

Others who may qualify for an exemption from DIRT or a DIRT refund are:

* The trustees of a trust fund for a permanently incapacitated person
* Charities
* People not resident for tax.

Paddyo

Just found this on the Archbishops Website (the archbishop is the patron of the school)

Schools have charity status and are exempt from payment of DIRT on deposit account income. You should approach the bank stating that as a school in the Archdiocese of Dublin, your school has charity status under the Charity Reference Number CHY 7424. You should be entitled to a refund if, in fact, you have been charged DIRT over a period of time.

http://www.education.dublindiocese.ie/index.php?option=com_content&view=article&id=919:dirt-exemption-for-schools&catid=466:finance&Itemid=84

Might be if use to other people

Paddyo

Cookie_Monster

ah, religion masquerading as a charity, I still can't believe that one is in place.

nompere

With the exception of certain categories of individuals there are three exceptions to the requirement to operate DIRT. These are Revenue notes edited for clarity:

Charities, Pension Schemes & Companies

Exempted charities

Interest may be paid gross without deduction of DIRT to an exempt charity. Before DIRT exempt status is granted such a charity should first be asked for the reference number, known as the charity (CHY) number that has been assigned to it by the Revenue Commissioners ... Revenue Commissioners’ Charities Section maintains a list of tax-exempted charities, which may be consulted, in cases of doubt.

Approved pension schemes

(omitted)

Companies within the charge to Corporation Tax

Interest may be paid gross without deduction of DIRT to a company within the charge to corporations tax. Before DIRT exempt status is granted such a company should first be asked for the reference number that has been assigned to it by the Revenue Commissioners, under Section 885. The deposit taker can assume that any company which provides a tax reference number falls within the charge to corporation tax.

So unless the school is a registered charity (many are) or run through the medium of a company there is no scope to have the accounts exempted from DIRT.

dbran

As nompere said.

But the charity status would only apply to bank accounts that are actually under the control of the board of management of the school.

dbran