NTMA Saving Certs / Bonds - Interesting Question ...

T

TomPetty

Registered User
Messages
52
Hi Folks,
What are your thoughts on the possibility of the Gov. deciding to "Retrospectively" apply DIRT to existing Saving Certs / Bonds that are held by individuals ?
I know they could easily decide from a point in the future onwards, that all new Certs / Bonds will have Dirt applied, but what my question is, what are the chances of them doing this to already held Certs / Bonds.
Same question re PRSI from Jan 2014.

Many thanks for your thoughts.

Regards,
Tom ;-)
 
The only thing that stops Government taxing anything, is that it would prove so unpopular that they won't get re-elected.

You have a signed contract from the date of purchase however there are examples of retrospective taxing although, in general, they prove to be very unpopular and so are few and far between. Tinkering with pensions is a favourite as not many people understand the pension industry in the first case.

The imposition of deemed disposals on funds is one example which comes to mind.
 
Hi CiaranT - Can you let me know your thoughts on my question above, when you get a chance, please.

Many thanks,
Tom.
 
I do not hold any bonds/savings certs but I would take the view that their is a contract involved in this and that no dirt can be applied retrospectively to the bonds/savings cert that have been issued.
 

Very unlikely to occur. Each investor purchased a largely 'tax free' product from the state. It would not be easy for the state to change that.

TomPetty said:
Same question re PRSI from Jan 2014.
Click to expand...

Indications, thus far, point towards State Savings tax free products not been subject to PRSI.
 
CiaranT said:
Indications, thus far, point towards State Savings tax free products not been subject to PRSI.
Click to expand...

Just wondering what indications you've seen, CiaranT. I can't seem to find any information about it.

Am I right in thinking that at the moment you don't have to mention interest from State Savings on a tax return?
 

I asked a similar question in post 41 of this thread http://www.askaboutmoney.com/showthread.php?t=163925&page=3
 
Hello,

While the person who refers to the taxing (direct or indirect) of pension funds and contributions is entirely correct in their comparison ....

I beleive that in this instance, anyone who bought these Savings Certs or Bonds on the basis that they were tax free, could later take a legal action against the Governemnt for blatent mis-advertising (given they are ultimately both the vendor of the product and also, the ones who later change the rules retrospectively, in this example). I take comfort from this...

Is there a discussion taking place on pensions and the taxation of same, by the way - I think this is something (different from the topic to hand) which could be worth discussing more ?

Thank you.

Mr. Earl.
 

Agreed. All the more reason to think that existing tax free State Savings products will never be subject to DIRT nor PRSI.
 
If a person was to inherit funds from a person who held their savings in State Savings Products would that inheritance be taxed if above the inheritance threshold?
 
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