Confirmed: Banks to repay TRS To Revenue

Thomas

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No, I took out my wallet and handed over the cash. I definitely bore the cost of the tab.
It looks like the central bank don't agree - just saw article in the Independent that BOI are backtracking and will now actually bear the cost (as I understand it) of the TRS!
 

Sarenco

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5,530
It looks like the central bank don't agree - just saw article in the Independent that BOI are backtracking and will now actually bear the cost (as I understand it) of the TRS!
Any chance of a link to that article?
 

SaySomething

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554
It's not in the online edition @Sarenco but if you go to Charlie Weston's twitter account you can see he has tweeted an image of it earlier today. From briefly scanning it, it appears that those who have already received refunds with the TRS docked are to have it returned to them. The bank is to refund the Revenue Commissioners directly at their own cost, and not to the cost of the customer.
 

Sarenco

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Thanks for that @SaySomething.

So a borrower that received (what turned out to be) excessive TRS will now, in effect, receive a higher compensation payment than a borrower that did not receive excessive TRS. I really can't see how that's fair.

Mind you, at this stage, I've given up trying to divine any principles from the Central Bank's approach - it all seems totally random.
 

Threadser

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Great news although I am a bit surprised by it to be honest. I can now look forward to a TRS refund cheque of €1,700 from BOI. Fair compensation for their lack of urgency in providing over charged customers with refunds.
 

Threadser

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Just to update I got my TRS refunded into my account by BOI today. It's almost €2000 so I am delighted to have it refunded.
 

Bronte

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No, I took out my wallet and handed over the cash. I definitely bore the cost of the tab.
Who are you kidding, the banks overcharged and are not paying anything out of their own pockets. And any fines or penalties they pay are not from themselves but from the customers they charge higher interest rates on than would be the case as they are using people like me on higher rates to pay everything - so I'm paying for some of this.
 

Bronte

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13,458
It's not in the online edition @Sarenco but if you go to Charlie Weston's twitter account you can see he has tweeted an image of it earlier today. From briefly scanning it, it appears that those who have already received refunds with the TRS docked are to have it returned to them. The bank is to refund the Revenue Commissioners directly at their own cost, and not to the cost of the customer.
I certainly hope Revenue are going to charge penalties and interest. That's the law isn't it. Any statement or guidence from Revenue on this.

Or do Revenue not apply some laws? Can they ignore certain taxation rules.

This should be fun. As interest and penalties are linked to each individuals tax returns.

(Hello Revenue boys).
 

SaySomething

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554
The Central Bank's revised (December 2017) Q&A section states this about TRS and how it should be treated by lenders:

Mortgage Interest Relief – or Tax Relief at Source (TRS) – is a form of tax relief based on the amount of interest paid on a mortgage loan. If you were overcharged by your lender due to a tracker mortgage related issue you may have received additional TRS credited to you. The Central Bank’s Tracker Examination Framework requires lenders to pay any tax charges that may be due as a result of redress, compensation or other payments made to affected customers. This includes TRS. No adjustment/deduction should be made to your redress and compensation payment in respect of tax charges. Your lender will liaise directly with Revenue in relation to the payment and you do not need to take any action.
 

Sarenco

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Who are you kidding, the banks overcharged and are not paying anything out of their own pockets. And any fines or penalties they pay are not from themselves but from the customers they charge higher interest rates on than would be the case as they are using people like me on higher rates to pay everything - so I'm paying for some of this.
Not sure why you have dragged up an old quote and then taken it completely out of context. o_O

You're right of course that all redress payments, compensation, fines, etc., will ultimately be indirectly borne by customers.

No guidance from Revenue that I'm aware of.
 
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