Treatment of DIRT on tax return

I am doing my parents tax return. In previous years I included interest as income which was taxed at 20% and then gave a credit for DIRT at the end so came to the same thing.
However if I do this for 2009 they will effectively only be paying 20% on it where is should be 23 and 25%. How to I include the interest as income and still pay the correct tax?

Aloysius said:

I am doing my parents tax return. In previous years I included interest as income which was taxed at 20% and then gave a credit for DIRT at the end so came to the same thing.
However if I do this for 2009 they will effectively only be paying 20% on it where is should be 23 and 25%. How to I include the interest as income and still pay the correct tax?

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Interest should be included in bank interest received part of tax return

If you put amounts in correct boxes in tax return or use ros they will tax the interest at the 23% and 25% rate and you will see it on assemnet

Thanks. I was going to fill in the form manually but maybe using ROS would be easier.

If it is a form12 you will have to do iy manually

if ros you have to register- may think a while to get passwords etc if form11

if straight forward- might be better to file manually

Sorry another question!
I have filled out form 11 manually. Problem is it asks to you to break down the interest between that earned up to 7/4/2010 and after ie when the DIRT rate went up. The banks only gave us interest certs for the years total though, no breakdown.
I have just divided it pro-rata, so not going to be right. Do you think that's acceptable? There isn't any tax to be calculated on it anyway as the DIRT is already paid.

I wouldn't worry about it

Aloysius said:

Sorry another question!
I have filled out form 11 manually. Problem is it asks to you to break down the interest between that earned up to 7/4/2010 and after ie when the DIRT rate went up. The banks only gave us interest certs for the years total though, no breakdown.
I have just divided it pro-rata, so not going to be right. Do you think that's acceptable? There isn't any tax to be calculated on it anyway as the DIRT is already paid.

Click to expand...

Check the interest certs, it should give the breakdown of gross interest, DIRT deducted and net interest. It won't give you the rate at which the interest was deducted but if you divide the DIRT figure by the Gross Interest figure then you will usually come up with 23% or 25%... (give or take a 0.05% or so).

I wouldn't worry about the breakdown of interest dates on the Return, just do the division as above and put each cert in under whichever rate the cert says was charged. You'll be taxed at the correct rate and get the correct credit for "dirt deducted".

The interest rate depends on the date your parents actually received the interest. You should not need to "pro rata" the amounts. Different banks pay out on various dates i.e. I get my AIB interest on 05/04, Ptsb interest in November, NIB and Anglo interest 31/12.