Tax Reliefs Cost

Dáil Éireann Debate, Wednesday - 11 December 2013

Wednesday, 11 December 2013

Questions (41)

Richard Boyd Barrett

Question:

41. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide in tabular form the costs of tax and PRSI relief for private pension provision for the years 2006 to date in 2013. [53234/13]

Written answers

Minister for Finance

The following tables provide a breakdown of the estimated cost of tax and PRSI reliefs relating to private pension contributions for 2006, 2007, 2008, 2009 and 2010, 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 2011 the necessary work of assembling the basic data to enable this to be done is ongoing. No data is yet available for 2012 or 2013.

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.

2006

Estimate of the cost of certain tax reliefs for private pension provision	Estimated costs	Numbers
-	€ million	-
Employees' Contributions to approved Superannuation Schemes	540	693,100
Employers' Contributions to approved Superannuation Schemes	120	363,100
Estimated cost of exemption of employers' contributions from employee BIK	510	363,100
Retirement Annuity Contracts (RACs)	435	125,900
Personal Retirement Savings Accounts (PRSAs)	55	45,200
Estimated cost of PRSI and Health Levy relief on employee contributions	220	Not available

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

2010

Estimate of the cost of certain tax reliefs for private pension provision	Estimated costs	Numbers availing
-	€ million	-
Employees' Contributions to approved Superannuation Schemes	599	625,100
Employers' Contributions to approved Superannuation Schemes	141	302,900
Estimated cost of exemption of employers' contributions from employee BIK	515	302,900
Retirement Annuity Contracts (RACs)	180	82,200
Personal Retirement Savings Accounts (PRSAs)	73	52,300
Estimated cost of PRSI and Health Levy relief on employee contributions	231	Not available