Dáil Éireann Debate, Wednesday - 3 October 2012
49. Deputy Aengus Ó Snodaigh asked the Minister for Finance the number of people who availed of the tax reliefs on private pensions last year and in each of the two previous years; the rate involved; and the value of same. [42181/12]
View answerThe following table provides a breakdown of the estimated cost of tax and PRSI reliefs relating to private pension contributions for 2007, 2008 and 2009, the latest year for which the most up-to-date data is available. Figures of the numbers availing of the tax reliefs are also provided, where available. Tax relief on employee or individual contributions is allowed at the taxpayer’s marginal rate of tax subject to limits based on annual earnings and age. Figures have been rounded where appropriate.
I am advised by the Revenue Commissioners that while corresponding updates of the figures are not yet available for the tax year 2010 the necessary work of assembling the basic data to enable this to be done is ongoing. No data is yet available for 2011.
Finally, it should be borne in mind that the information imparted by the costing of tax and other reliefs in the pensions area is inherently limited. It may suggest a significant notional loss in terms of tax foregone as compared with the savings that might be expected if the tax relief was not available.
However, where tax relief arrangements are of such significance, as in this instance, the removal of the reliefs would represent a fundamental adjustment to the current balance of the tax system and would have very significant implications in terms, among other things, of the economic and behavioural impacts which would ensue. These impacts would be difficult to model in advance. For these reasons, the real informational content of the costings of tax reliefs is limited and should be treated with some caution.
2007
|
Estimate of the cost of certain tax reliefs for private pension provision |
Estimated costs |
Numbers availing |
|
€ million |
||
|
Employees’ Contributions to approved Superannuation Schemes |
590 |
708,500 |
|
Employers’ Contributions to approved Superannuation Schemes |
150 |
364,700 |
|
Estimated cost of exemption of employers’ contributions from employee BIK |
540 |
364,700 |
|
Retirement Annuity Contracts (RACs) |
408 |
121,300 |
|
Personal Retirement Savings Accounts (PRSAs) |
61 |
46,600 |
|
Estimated cost of PRSI and Health Levy relief on employee contributions |
240 |
Not available |
2008
|
Estimate of the cost of certain tax reliefs for private pension provision |
Estimated costs |
Numbers availing |
|
€ million |
||
|
Employees’ Contributions to approved Superannuation Schemes |
655 |
792,600 |
|
Employers’ Contributions to approved Superannuation Schemes |
165 |
362,700 |
|
Estimated cost of exemption of employers’ contributions from employee BIK |
595 |
362,700 |
|
Retirement Annuity Contracts (RACs) |
353 |
116,000 |
|
Personal Retirement Savings Accounts (PRSAs) |
74 |
53,900 |
|
Estimated cost of PRSI and Health Levy relief on employee contributions |
255 |
Not available |
2009
|
Estimate of the cost of certain tax reliefs for private pension provision |
Estimated costs |
Numbers availing |
|
€ million |
||
|
Employees’ Contributions to approved Superannuation Schemes |
730 |
713,600 |
|
Employers’ Contributions to approved Superannuation Schemes |
155 |
342,200 |
|
Estimated cost of exemption of employers’ contributions from employee BIK |
560 |
342,200 |
|
Retirement Annuity Contracts (RACs) |
237 |
101,300 |
|
Personal Retirement Savings Accounts (PRSAs) |
77 |
56,200 |
|
Estimated cost of PRSI and Health Levy relief on employee contributions |
230 |
Not available |
