EU Deposit Interest - Revenue Reporting

PoundMan said:
Am I correct in thinking that I need to submit my online return for 2023 before November 1st?
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That is my understanding, otherwise you will fall foul of the part of the rule that states “The income will be subject to a higher rate of 40% tax if it is not returned on time.”

Unlike self assessment cases, where the deadline for filing Form 11 can be extended to 14th November by filing electronically, the deadline for form 12 remains the same, 31st October, whether filed electronically or on paper.
 
Is this just an issue with Form12? I submitted my Form11 a few days back and it appears as though EU interest was taxed at 33%. Unless it is manually changed over the next week or so, that is.
 
Original said:
Is this just an issue with Form12? I submitted my Form11 a few days back and it appears as though EU interest was taxed at 33%. Unless it is manually changed over the next week or so, that is.
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Just tried the Form 11 and for me it's 37%, 33% DIRT + PRSI. PRSI is levied on people paying via Form 11, regardless of amount being paid.

Is it possible Form 12 goes to regional tax offices which would seem a bit daft, but that might partly explain why we hear it's fixed, only to later hear someone else say it's still broken.
 
podgerodge said:
@Brendan Burgess would here be a way of getting media traction on this, quite an incredible story of incompetence by the States revenue commissioners.
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Brendan Burgess said:
Sure. Ring Charlie Weston in the Indo or anyone in the Irish Times.
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Will Goodbody of RTE picked up on this during the summer. Chartered Accountants Ireland (CAI) and other Accountants had been in contact with Revenue about various issues and the expectation was that these would be fixed by 15th July. Clearly they haven't been:

https://www.rte.ie/news/business/20...concerned-about-issues-with-revenues-form-11/

I'll wait and see what response I get to the request for correction I sent off this morning to MyEnquiries. As I said previously, if it's not resolved I'll go directly to the Tax Appeal Commissioners and I think I'll cc Niall Cody, the Chairman of the Board of the Revenue Commissioners. This is going on far too long and is very unfair and is bringing Revenue into disrepute. It is also penalising those who are attempting to be tax compliant by declaring their EU interest. And in all probability a lot of these errors are going undetected as there are many people who would not be bothered or capable of checking the SOL ad thus are paying more than they are liable for due to Revenue's negligence.
 
Freelance said:
Will Goodbody of RTE picked up on this during the summer. Chartered Accountants Ireland (CAI) and other Accountants had been in contact with Revenue about various issues and the expectation was that these would be fixed by 15th July. Clearly they haven't been:

https://www.rte.ie/news/business/20...concerned-about-issues-with-revenues-form-11/

I'll wait and see what response I get to the request for correction I sent off this morning to MyEnquiries. As I said previously, if it's not resolved I'll go directly to the Tax Appeal Commissioners and I think I'll cc Niall Cody, the Chairman of the Board of the Revenue Commissioners. This is going on far too long and is very unfair and is bringing Revenue into disrepute. It is also penalising those who are attempting to be tax compliant by declaring their EU interest. And in all probability a lot of these errors are going undetected as there are many people who would not be bothered or capable of checking the SOL ad thus are paying more than they are liable for due to Revenue's negligence.
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I emailed Niall Cody office. Received email back and phonecall from Revenue the next day. Person explained that I was wrong about my understanding of how the DIRT should be applied. I almost gave up. Eventually they changed it, thanks to help received here. Email chairmansoffice@revenue.ie

Chairman’s Office | Revenue |Blocks 8-10, Dublin Castle, Dublin 2 |01 – 8585910
 
A week elapsed and I received a response from Revenue via My Enquiries. A thick stupid utterly useless generic cut and paste response in three short paragraphs that clearly demonstrates incompetence or carelessness or the inability to comprehend English or a mix of all three. To paraphrase:
  • DIRT is a final Liability Tax
  • Calculating and Charging DIRT is the responsibility of the Financial Institution not Revenue
  • Please obtain and send a statement from the Financial Institution confirming the total DIRT Deducted
I've sent off the statement and asked that they read my original e-mail, correct the coding of the declaration and reissue the SOL with the DIRT calculation corrected.

What a total waste of time and how utterly frustrating that they are unable to (a) calculate this correctly first day and (b) incapable of correcting he error when it is spelled out to them. Unfortunately I cannot take this to the Tax Appeal Commissioners until such time as they issue "a final assessment"
 
Was there a template email somewhere in this thread that could be used to send to Revenue when asking them to fix the error? Or have I imagined that?
 
PoundMan said:
Was there a template email somewhere in this thread that could be used to send to Revenue when asking them to fix the error? Or have I imagined that?
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This?

EU Deposit Interest - Revenue Reporting

I haven't given up and I've found a more clear summary of how deposits from EU should be taxed. I can't include links (not enough comments in askaboutmoney) but you can find searching for "5-taxation-investment-products" in google and find a gov.ie page. I am going to send this to the Revenue...
www.askaboutmoney.com
 
I can confirm that EU deposit interest is still being coded and taxed as 'Other foreign income' on my 2023 Statement of Liability issued a week ago. Despite being coded correctly on my return (form 12).

I've just noticed the same coding issue on my 2022 SoL (although the amount was not material then). I have not confirmed via calculation that full income tax was applied in 2022 or 2023, but can see that interest was coded correctly as 'Deposit interest received' in 2021.
 
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Have raised an enquiry, citing EU law and https://www.revenue.ie/en/additional-incomes/dirt/foreign-deposit-income.aspx
Interest on savings with an EU bank or other deposit taker is generally taxed at the same rate as DIRT.

I wonder if there's some weird wriggle room where if the institution deducts it then DIRT applies, otherwise Revenue apply income tax? That wouldn't feel fair or in the spirit of EU law, although they could strictly speaking argue consistent treatment EU wide. Unfortunately I had a number of 2 year fixed rate final interest only accounts mature in 2023, so it's certainly in my interest to chase up.
 
I can't imagine that there is any wriggle room. Generally with Revenue it's black or white, and the rules on EU DIRT are reasonably clear (and a lot clearer then they were). The only "anomaly" where there is different treatment is in relation to PRSI being charged on Deposit Income on Form 11 and not on Form 12, but the underlying reason for that is also rules based.

I just can't understand why it is happening in the first place. Surely the transfer of the data element "EU Deposit Interest" on the online Form 12e should be mapped to the correct field in the underlying Income Tax system that is used to calculate the SOL and the data should transfer automatically to the correct field? It appears that there is manual transfer/re-coding/re-keying going on which is difficult to believe in this day and age. Why is manual intervention necessary and if it is why can staff not be trained properly ?

The amount at stake for me is a couple of hundred euro for 2023, but it will be an awful lot more in 2024. I'd still prefer that I get it rather than Revenue - I pay them quite enough as it is.
 
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Freelance said:
I can't imagine that there is any wriggle room. Generally with Revenue it's black or white, and the rules on EU DIRT are reasonably clear (and a lot clearer then they were). The only "anomaly" where there is different treatment is in relation to PRSI being charged on Deposit Income on Form 11 and not on Form 12, but the underlying reason for that is also rules based.

I just chant understand why it is happening in the first place. Surely the transfer of the data element "EU Deposit Interest" on the online Form 12e should be mapped to the correct field in the underlying Income Tax system that is used to calculate the SOL and the data should transfer automatically to the correct field? It appears that there is manual transfer/re-coding/re-keying gpomg on high is difficult to believe in this day and age. Why is manual intervention necessary and if it is why can staff not be trined properly ?

The amount at stake for me is a couple of hundred euro for 2023, but it will be an awful lot more in 2024. I'd still prefer that I get it rather than Revenue - I pay them quite enough as it is.
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Won't that push you significantly over €5000 interest and therefore onto Form 11 in 2024, where it seems it's now being treated correctly?
 
if you receive interest from savings in 2024...you don't have to declare it to revenue until october 2025 ..is that correct?
 
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