263B Declarations to the Revenue Commissioners relating to deposits of certain persons

Summary

This section provides for a form of declaration in respect of deposits beneficially owned by individuals who, or whose spouse, are permanently incapacitated or where the persons entitled to the interest are trustees of a special trust for permanently incapacitated individuals where the income is exempt from tax. Such persons are required to make a declaration to that effect to the Revenue Commissioners and also declare that they would be entitled to a refund of the entire DIRT from Revenue if it had been deducted. The financial institution will, on receipt of a notification under section 263C from Revenue, pay interest on such deposits without deduction of DIRT. The section supplements paragraph (j) of the definition of “relevant deposit” in section 256(1) and also section 256(1B).

Details

Declarations

Before the Revenue Commissioners can consider whether to notify the financial institution, in accordance with section 263C, that a deposit under subsection (1B) of section 256 is not to be treated as a “relevant deposit” i.e. interest paid DIRT free, they must receive the required declaration.

The required declaration must be made in writing to the Revenue Commissioners and must —

• (a) be made by the person to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker,
• (b) be made in such form as may be prescribed, authorised or approved by the Revenue Commissioners. This allows for the submission of declarations electronically,
• (c) declare that at the time the declaration is made —
  • the individual beneficially entitled to the interest in relation to the deposit or his or her spouse or civil partner is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself, and
  • the individual beneficially entitled to any interest paid in respect of that deposit in any year of assessment or his or her spouse is a relevant person (within the meaning of section 267) and the individual would, in accordance with section 267(3), be entitled to a repayment of the whole of any appropriate tax if it has been deducted from that interest,
    or
  • the person entitled to the interest in relation to the deposit is exempt from income tax by virtue of section 189A(2) (i.e. trustees of special trusts for permanently incapacitated individuals) and would, in accordance with section 267(2), be entitled to a repayment of the whole of any appropriate tax if it has been deducted from that interest,
• (d) contain as respects the person, or as the case may be each of the persons mentioned above:
  • the name and address of the person,
  • the person’s PPS Number (within the meaning of section 891B) or, if not an individual, the persons tax reference number (within the meaning of paragraphs (a) and (b) of the definition of “tax reference number” in section 885),
  • the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and
  • the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made,
• (e) contain an undertaking by the declarer that if the person or persons mentioned above no longer satisfies the conditions set out in section 256(1B)(a), the declarer will notify the Revenue Commissioners accordingly, and
• (f) contain such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

Relevant Date: Finance Act 2021