Dáil Éireann debate -
Tuesday, 26 May 1998

Vol. 491 No. 3

Written Answers. - Pension Provisions.

Joe Higgins

Question:

258 Mr. Higgins (Dublin West) asked the Minister for Finance the cost of tax foregone in view of the fact that pension payments made by companies for the benefit of directors of companies are treated as expenses of the companies rather than an appropriation for the profits of the companies; and the plans, if any, he has for putting a limit on this similar to that which applied in terms of personal income in view of the fact that this mechanism can be abused, particularly by directors of close companies. [12211/98]

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested by the Deputy to be provided. To provide the information requested by the Deputy would require an examination of the accounts of all companies which could only be carried out at disproportionate cost.

The question of an earnings cap for pension payments is one of a number of taxation issues in the pensions area which will be examined by the Government in the light of the recent Pensions Board report on the national pension policy initiative. A working group comprising representatives of the Department of Social, Community and Family Affairs, the Department of Finance and the Revenue Commissioners has been set up for this purpose.