Q.  I am a widow in my late seventies and find it hard to get to the bank. I want to put my son’s name on my bank accounts so that he can get money out for me. Will this affect my entitlement to a DIRT refund or my son’s tax liability?

23.08.09

Deposit Interest Retention Tax (DIRT) is deducted at source from interest paid on deposits held by banks, building societies, credit unions and the Post Office Savings Bank. You can claim a refund of DIRT if you are aged 65 or over during the year and if your gross income from all sources is less than €20,000 (or €40,000 for a married couple).

In general, joint accounts where one of the account holders is aged 65 or over will only qualify for the refund of DIRT where the other account holder is that person’s spouse. However, if you appoint your son as an agent to operate your bank accounts on your behalf, and if he is named as an account holder for this purpose only, you will continue to qualify for the refund provided that your beneficial ownership of the accounts is not affected. When making the DIRT refund claim to Revenue, you should include a declaration that you are beneficially entitled to all of the interest paid in respect of your bank deposits. Your son’s tax liability is not affected, as he is operating solely as your agent and will not have any beneficial ownership of the money.
 

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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