D.I.R.T. calculation ?

[DirectDevil]

I earned E 73.78 gross interest on a deposit account subject to DIRT. DIRT deducted was E 14.76 leaving a net interest to me of E 59.02.

On the balancing statement [P21] Revenue added the E 59 to my income figure for income tax purposes and then gave me a tax credit of E 11.80 in respect of DIRT.

I am a little confused as I don’t quite get the calculation !!

Is the net effect of this calculation that I have only paid DIRT on the deposit interest ?

Many thanks.

 

[GeneralZod]

That sounds like you declared the net figure instead of the gross figure.

 

[extopia]

Yes, that's what it looks like to me too.

Very annoying that revenue asks for the gross figure on the tax return. They could easily ask for the net figure and save us all the bother of "grossing up", where mistakes like this inevitably get made.

 

[DirectDevil]

Understood.

Thanks for that info.

What irritates is that I sent them a certificate from the institution confirming the gross and net values !!

 

[Graham_07]

If you entered the net amount on the return in the space for Gross Interest, then they will use that figure. Cross checking from form to document would not necessarily be automatic for every item. Especially now that you normally do not have to send any attachments with the return anyway.

 

[meatmonger]

What irritates is that I sent them a certificate from the institution confirming the gross and net values !!

now theres a dept that could be chopped in half.