Do banks/credit unions return deposit interest received to revenue.

S

SlugBreath

Registered User
Messages
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I got my PAYE Balancing statement in the post recently.

I noticed that there was a posting that said I received €40 in interest from a Financial Institution. I have no record of this.

I contacted revenue and they hadn't a clue as to how it was posted on my balancing statement nor could they give me a narrative as to where it came from.

Do banks/credit unions etc return interest paid to customers to the revenue and why would the revenue not be able to tell me where this deduction came from?
 
Yes, under return of payments legislation.
No idea why it's on your balancing statement though.
Was it a bank or credit union?
 
My understanding that there is an automatic return of information - the last time I saw the limit was interest earned over €250 on an account though this may have changed. In relation to your query if you didn't earn it ask them to have it removed. If it is subject to DIRT then the only additional tax should be PRSI @ 4%(if this can even be charged on a balancing statement now - not sure).
 
dublin67 said:
My understanding that there is an automatic return of information - the last time I saw the limit was interest earned over €250 on an account though this may have changed.
Click to expand...
Can you just clarify what you are saying about a limit? Are you saying that banks must return all interest earned on accounts over €250 to the revenue but under €250 is not returned?
 
Kimmagegirl said:
Can you just clarify what you are saying about a limit? Are you saying that banks must return all interest earned on accounts over €250 to the revenue but under €250 is not returned?
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No, it's more complex than that.
The first time you receive interest on an deposit, regardless of the amount, it's returned to Revenue.
From that point on, every year an account receives more that threshold amount, it's notified.
The threshold is currently 635 euro , since 2015

It's a short piece of legislation if you fancy reading the stuff I have to!

http://www.irishstatutebook.ie/eli/2008/si/136/made/en/print
 
RedOnion said:
The first time you receive interest on an deposit, regardless of the amount, it's returned to Revenue.
From that point on, every year an account receives more that threshold amount, it's notified.
The threshold is currently 635 euro , since 2015
Click to expand...

In my case I didn't open any account in 2018, so I am not sure why I was returned for €40 of interest.

I wonder do some financial institutions just return "all" accounts whether new or old.
 
But you have no record of receiving 40 euro interest according to your first post?
So it might have been incorrectly submitted with your PPSN, and actually be someone else's interest.

Just tell Revenue it's not yours, and ask them to remove it. If they investigate, they'll be able to find exactly where it came from.

Assuming you didn't do any P2P lending - the above only relates to deousits.?
 
Also, assume you don't have a foreign deposit account?
They also exchange information with Revenue and the rules are different.
 
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