Occupational Pensions
15/03/1984
Query
Salary Sarcrifice.
Decision
While the question of taxation of the emoluments is a matter for the appropriate tax District dealing with the employees ,it is the opinion of this Office that any arrangement under which an employee waived an entitlement to remuneration or accepted a reduction in remuneration in return for a corresponding payment by the employer into the pension scheme to enhance the employees pension benefits would be regarded as an application of the employees income.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/31
05/11/1985
Query
Do all employee contributions qualify for PRSI relief ?
Decision
No. Purely as a consequence of the operation of the net pay arrangement the ordinary annual contribution is relieved from PRSI .Special Contributions (those paid directly by the employee to the scheme) do not qualify for PRSI relief.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/27
17/01/1986
Query
Can a residual Widows /Widowers/Dependantd pension be commuted. if trivial ?
Decision
No. They can only be commuted when they come into payment.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/19
18/02/1986
Query
Normal Retirement Age Firemen
Decision
Normal Retirement Ages from Age 55 are acceptable.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
31/07/1986
Query
Does "remuneration" under Sections 774/776 include termination payments chargeable to tax under Section 123 ?
Decision
For the purposes of Sections 774/776 "remuneration" does not include payments which are chargeable to tax under Section 123.
Income Tax
Section 774/776, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
21/03/1987
Query
Can Irish Insurance Companies appoint foreign fund managers.
Decision
Yes,but only fund managers resident in E U States.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/29
28/04/1987
Query
Can a scheme capable of approval be established after the poin of retirement .
Decision
Yes,but only to the extent that it provides for benefits for the ex -employee in a non commutable form.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/20
15/05/1987
Query
In what circumstances can funds be transferred to a U. K. buy out bond.
Decision
Only if the individual would be resident in the U. K. subsequent to termination of service.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/10
30/07/1987
Query
Are tax fre lump sums in commutation of foreign pensions taxable in Ireland should the individual come to reside in this country following their retirement ?
Decision
No
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/28
06/10/1988
Query
Normal Retirement Age Moneybroker/Dealers
Decision
In the case of Directors engaged as moneybroker/dealers or as managers responsible for such dealers, N R A of 55 and upwards acceptable.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
18/01/1989
Query
Normal Retirement age later than 70 ?.
Decision
Only where it is customary for employees in a particular occupation to retire at an age later than 70.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
28/02/1989
Query
How to allow releif on contributions paid periodically while the individual is on a career break?
Decision
Amounts paid during absence on career break to be treated as "special contributions" and allowable on a spread forward basis .Thus ,releif becomes available when the individual re- commences the employment.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/22
12/07/1990
Query
Can Eployees in receipt of long term disability benefits remain in an occupational pension scheme?
Decision
Where an insurance company has undertaken to continue to pay long term disability payments in cases where employments have been effectively terminated then there will be no Revenue objection to the continuation of those members in the employers pension scheme,and for the continuation of appropriate funding through the relevant amounts received fir such purposes under the disability scheme.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/21
16/10/1991
Query
How should advance payments of contributions which are due and payable in subseqent accounting periods be treated?l
Decision
They should be disallowed . Neither can they be treated as special contributions and spread forward as such special contributions are only allowable to fund for past service.or to augment benefits already secured. or to make up an actuarial deficiency.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/24
22/12/1993
Query
Split transfer values.
Decision
Revenue Practice would not permit the splitting of a members total benefits so that part of such benefits would be dealt with by a transfer payment and a part held by the trustees of the scheme as a deferred benefit..
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
08/07/1994
Query
Do the provisions of Practice Note 4.4 apply to one member schemes?
Decision
No the provisions in Practice Note 4.4 apply to one man insured arrangements only.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/23
12/10/1994
Query
Can an employer make futher contributions to a scheme after benefits for ex -employee have been transferred to a buy out bond ?
Decision
Yes, if within approvabke limits and ias it is likely that maximum approvable lump sum element of benefits would be taken from the buy out bond, the further benefits ariising would need to be in pension form only.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/11
28/10/1994
Query
Can a non- Irish nation seconded to work in Ireland rmain in his home country scheme and get releif from Irish tax on his contributions to that scheme.?
Decision
Yes, provided that the secondment here is for a period of less than 10 years, the scheme is a trust scheme, and the benefits to be provided by the overseas scheme are within Irish approval limits.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/30
05/04/1995
Query
Will tax releif be allowed on contributions made by employees who have left service?
Decision
Releif may be granted on contributions made on or shortly after leaving service.This is intended to cater for special circumstances where there might be an unavoidable delay in the employee making a special contribution, for example, in many public sector schemes retiring employees have deductions made from lump sums to pay for spouses benefits which qualify for releif. Strictly speaking contributions should only be paid by "employees" and not ex-employees
Residential Property Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/26
05/02/1996
Query
Calculation of Remuneration for pension benefit purposes .Is remuneration for pension purposes reduced by virtue of the deduction for income earned outside the State (Sec 823 TCA)
Decision
No.The remuneration figure on which benefits are based is the remuneration before the deduction for income earned abroad (excluding the United Kingdom.
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
20/03/1996
Query
Is it permissable for an employer to make payments to employees to compensate for changes in the benefit structure of a pension scheme , free of tax?
Decision
If the situation is a bone fide one,for examlple ,arising out of Labour Relations recommendation and ultimately a Labour Court ruling then it may be possible for the employer to pay the compensation free of tax. Each case would have to be judged on its merits.
Income Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/32
03/01/1997
Query
Fluctuating Emoluments. What may be included for Final Remuneration purposes.
Decision
The following may be included Benefits in Kind chargeable under Sec 118 TCA Expenses Allowances chargeable under Sec 117 TCA Preferential Loans chargeable under Sec 112 TCA (net amount after interest relief ) Share Options / Share Particiopation Schemes chargeable under Sec 128 TCA ( only the amount actually charged )
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC
28/07/1997
Query
Do the restrictions ouylined in Practice Notes 9.3 and 9.4 apply in cases where benefits are deferred to Normal Retirement Age..
Decision
No
Corporation Tax
Section 772, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:PREC/9