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Bank says 'sorry' for DIRT error

AN ONLINE bank has apologised to its Irish customers after mistakenly applying the new higher rate DIRT tax to savers' accounts at the end of last year.

Dutch-owned Rabodirect sent emails to customers this week telling them it had "messed up".

It had applied the new 2011 rate of DIRT tax at 27pc on all personal on demand savings accounts, sole trader accounts and term deposit accounts maturing on December 31, 2010 when it should have applied the old rate of 25pc.

The bank blamed the error on a "system glitch".

It wrote: "But we will save you the lame excuses and system spiel and instead say we are truly sorry and tell you the good news which is ... you are due a refund."

It said it hoped to have everyone refunded by the end of this week, adding, "we are working to ensure that this does not happen again."

Irish Independent