asked the Minister for Finance if the provisions of the Finance (Miscellaneous Provisions) Act, 1968, relative to tax exemptions for persons in receipt of pensions from other States have been implemented; if these exemptions apply to British pensioners resident in this country; and if he will make a statement on the matter.
Ceisteanna—Questions Oral Answers. - Tax Exemption for Pensioners.
36.
The provisions of the Finance (Miscellaneous Provisions) Act, 1968, exempting certain foreign pensions from income tax have been implemented with effect from 6th April, 1967, as provided by the Act.
I would like to clarify the scope of the exemption. A pension derived from previous employment in a foreign country, or payable under the social welfare legislation of a foreign country, is exempt from Irish tax in the hands of a person resident in this country if it would have been exempt from the tax of the foreign country had the person continued to live there. In short, if the pension is not taxable in the foreign country it is not taxable here.
The exemption applies, of course, to British pensioners resident in this country if their pensions are exempt from tax in Britain. However, I understand that British pensions in general are not exempt from tax in Britain.
Is the Minister aware that he was quoted in at least one British paper as stating——
Go bhfóiridh Dia orainn.
Is it not a fact —I do not blame the Minister; I understand he was indisposed for a considerable time—that all references to Ministers' speeches published in the British Isles and in this country are extracted and brought to the notice of the Minister? Is he further aware one British newspaper did state that pensioners coming to reside in this country would have their pensions free of tax? Further, is he aware that people did come to this country in the hope that their pensions would be free of tax? Further, if such a publication was brought to his notice was anything done in his Department—I am not saying by the Minister personally—to deny the veracity of the statements?
The misleading report was published in a British newspaper. I am sure the Deputy will be well aware that there is nothing new in that in so far as this country and British newspapers are concerned. That statement was immediately followed by a statement issued by the Government Information Bureau on my behalf clarifying the position.
Were any steps taken to ensure it was published in the paper which carried the original statement?
It was not for me to do that. I requested the Government Information Bureau to issue a statement setting out the correct position.
The Minister will appreciate that a number of people did come here in the hope that their pensions would be exempt from tax and they find themselves caught in the same net now.
I suppose they could sue the appropriate British newspaper.