Are Ombudsman Rulings & Bank Goodwill Gestures deemed taxable income

[MrEarl]

Hello,

Happy New Year, to you all.

If the Ombudsman maks a ruling in the customer's favour, to include order for payment of compensation by a financial institution, is it deemed taxable income (and subject to declaration, in the customer's personal tax returns?)?

Also, if a financial institution makes a goodwill payment to a customer, in settlement of a complaint (but without admitting wrong doing etc.), is that also subject to tax payment, by the customer ?

Many thanks

 

[Brendan Burgess]

Hi Mr Earl

No, it is not taxable. It is not income or capital gains or a gift (for CAT).

A possible exception might be where someone had an investment mortgage and claimed tax relief on the interest paid. If they got a refund of interest after a complaint, this refund would reduce the amount claimed against tax in the year of the refund.

Brendan