Dáil Éireann debate -
Tuesday, 15 Jun 1993

Vol. 432 No. 3

Written Answers. - Taxation of Retirement-Redundancy Lump Sums.

Noel Ahern

Question:

67 Mr. N. Ahern asked the Minister for Finance if he will ensure that the provisions in the Finance Bill, 1993, operate retrospectively to 1 January 1993, in respect of tax changes in relation to redundancy/retirement lump sums in view of the confusion caused by the statement in the Programme for a Partnership Government 1993-1997 that measures were being considered to discourage redundancies as this fear brought forward many redundancies and many people now find themselves being penalised; and if he will make a statement on the situation which obtains at present.

Minister for Finance (Mr. B. Ahern)

I am not aware of any confusion in relation to this matter.

The changes in the tax treatment of redundancy lump sums contained in the Finance Bill which will take effect in relation to payments made on or after 6 May 1993 strike a balance between the need to avoid encouraging redundancy and the desire to improve the situation of persons made redundant.

I do not intend to provide for retrospection prior to 6 May as this is the date when the measure was announced.