Which one of the following can NOT reclaim DIRT deducted from deposit interest?

• A. PRSA
• B. ARF
• C. Partnership
• D. Company

Answer: (C)

DIRT is the tax withheld at source on deposit interest in Ireland, and the ability to reclaim it depends on how the income is taxed and who holds the funds. Personal retirement vehicles like PRSA and ARF operate within the pension framework, where the impact of tax on the investment is managed through the retirement account’s taxation, so the DIRT withheld on interest within these schemes is effectively reclaimable by the pension arrangements for the saver. A company can reclaim DIRT as a credit against its corporation tax liability, reducing the net tax on its interest income. A partnership, however, is a pass-through entity and does not reclaim DIRT at the partnership level; the underlying tax position flows to the partners, so the partnership itself cannot reclaim DIRT directly. Therefore, the entity that cannot reclaim DIRT directly is a partnership.