23% dirt

T

TonyBoy

Registered User
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17
I have a 12 Mount Fixed Term Saving due to mature on 5th January 2009.
Is the DIRT calculated at 20% up to 31st Dec? & 23% 31st Dec to 5th Jan?
 
http://www.finance.irlgov.ie/documents/publications/financeno.2%20bill%202008/FinNo.2memo.pdf (Department of Finance - Explanatory Memo Finance No.2 Bill 2008)

Section 24 increases Deposit Interest Retention Tax by three per-
centage points with effect from 1 January 2009.
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TonyBoy said:
I have a 12 Mount Fixed Term Saving due to mature on 5th January 2009.
Is the DIRT calculated at 20% up to 31st Dec? & 23% 31st Dec to 5th Jan?
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I raised a similar query with my bank last month. I was informed that if the interest is allocated to your account after 31st Dec, then23% dirt would be deducted from the entire amount. It seems unfair as the interest is accumulated for maybe 364 days when dirt was just 20%.
 
Mit55 said:
I raised a similar query with my bank last month. I was informed that if the interest is allocated to your account after 31st Dec, then23% dirt would be deducted from the entire amount. It seems unfair as the interest is accumulated for maybe 364 days when dirt was just 20%.
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Which bank told you this?
 
Mit55 said:
It seems unfair as the interest is accumulated for maybe 364 days when dirt was just 20%.
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Very unfair. One may have made a different investment decision had there been a 23% DIRT rate at the time a fixed rate bond, say, was taken out.

A pro rata split would surely be the fairest way
 
If the DIRT rate was reduced would you argue for the same thing? I'm affected by this too and think it's perfectly fair - this is the way DIRT has always worked.
 
MugsGame said:
If the DIRT rate was reduced would you argue for the same thing? I'm affected by this too and think it's perfectly fair - this is the way DIRT has always worked.
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certainly couldn't complain if DIRT was decreased and a pro rata system was enforced.

As I said I think its the fairest way. DIRT was 20% in 2008, interest accrued in 2008 should be taxed at 20%. DIRT is 23% in 2009, interest accrued in 2009 should be taxed at 23%
 
MugsGame said:
If the DIRT rate was reduced would you argue for the same thing? I'm affected by this too and think it's perfectly fair - this is the way DIRT has always worked.
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What do you mean this is how it has always worked? Anglo online accounts show gross and net interest earned and update this daily. Any account where interest is accrued daily, whether shown on the online account or not, should be calculated in the same way. Just because the interest is paid annually doesn't change the fact that it has been accrued and has formed part of the value in the account.

Jethro Tull said:
certainly couldn't complain if DIRT was decreased and a pro rata system was enforced.

As I said I think its the fairest way. DIRT was 20% in 2008, interest accrued in 2008 should be taxed at 20%. DIRT is 23% in 2009, interest accrued in 2009 should be taxed at 23%
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That's exactly how it should be done. You can be sure if DIRT was reduced the interest accrued in 2008 would be subject to the high rate and only the interest accrued from 1st January would be subject to the low rate.
 
I called into Anglo Irish today. My one year fixed account was updated with interest.

These are the details:

A/C Opened 3/1/08.
Interest 5%.
12 Month Interest added: 2/1/09.

Its an easy calculation and I can confirm that 23% dirt has been deducted from the entire amount.
 
I have the same problem but the DIRT % rate went up to 25% from 23% IN MAY!! from 20% to 23% on 31st December. I was charged 25% on the full amount on a one year regular savings account with anglo irish.

Is there any chance of reclaming part of the DIRT? It is unfair getting charged the full 25% amount.

P.
 
askU, consider that cheap compared to what the next budget may bring it up to !!!
Anyway, isnt the 2% extra great to help the country's debts :)
 
Unfortunately DIRT is only payable upon payment of Interest.

If you want certainty when it comes to DIRT deduction then open an account that pays Interest Monthly - First Active, Ulster Bank, Northern Rock immediately come to mind in that regard.
 
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