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Deposit Guarantee Scheme

Sligo Credit Union, and all Credit Unions, are covered by the Deposit Guarantee Scheme which is provided for in the European Communities (Deposit Guarantee Schemes) Regulations 1995.  On the 4th of October 2008 the Minister for Finance extended this guarantee to Credit Union members giving each depositor, where compensation is payable, maximum compensation payment of €100,000.

Under new regulations, all financial institutions, including credit unions, are now required to notify the Revenue Commissioners of details of deposit interest or dividend payments where the interest or dividend payment exceeds €635 in any year.  In addition, the first interest or dividend payment, irrespective of amount, on new accounts opened on or after the 1st of January 2008 is required to be notified to Revenue.  If you have tax issues relating to underlying funds held within the credit union or the interest or dividend payments, you may qualify for the unprompted voluntary disclosure under Revenue Code of Practice.  You should contact Revenue at their helpline 01 6474818.

If is important that members are aware of the options for accounting for their Dividend.  The new Revenue regulations means that Credit Unions must report annually certain details in respect of dividends in excess of €635 and the first dividend, irrespective of the amount, on all accounts opened after 1st January 2008.  Please note that your credit union cannot provide taxation advice to its members.

  • Regular Share Account – Interest is paid on a gross basis to members who should account for this income directly with the Revenue Commissioners in their annual tax return
  • Special Share Account – the Credit Union deducts DIRT from the annual dividend.
  • Special Term Share Accounts (Medium and Long Term) – DIRT is only deducted on dividends over €480 for medium term and €635 for long term accounts.  There are restricitions in place on withdrawals and the amounts that can be added to these accounts.

If you are aged over 65, you may be entitled to receive interest without deduction of DIRT if you comply with certain conditions.  There are principally that your single or joint income is less than the current thresholds of €20,000 and €40,000 respectively.

Please contact Revenue for full details or see their website;

www.revenue.ie