The application of the High Court decision to a pension scheme depends on the terms of the scheme. I am advised by the Revenue Commissioners that where they are satisfied that the decision applies to a pension scheme, the persons responsible for making payments under the scheme have been or, as the schemes arise, will be made aware of the effects of the decision.
The decision applies in the case of the primary and secondary teachers' schemes and I am advised by the Revenue Commissioners that the persons responsible for making pension payments have been advised accordingly. Generally speaking, the decision will be implemented for the current and future years by the payer excluding from the parents' income for PAYE purposes the pension payment which relates to children. Where payers have difficulty in adjusting payroll systems in the current tax year the Revenue Commissioners will make refunds after 5 April next.
With regard to back years a PAYE taxpayer is entitled under section 133 of the Income Tax Act, 1967 to request a review of his or her tax liability for the previous five years. In the case of the pensioners in question any such review would exclude from the parents' income the pension relating to children and a tax refund, as due, would be made.