I propose to take Questions Nos. 343 and 344 together.
It is not possible to provide disaggregated figures in regard to the take-up of the tax relief for all pension contributions across different income categories because the relevant data in regard to contributions is not captured in such a way as to make this possible.
Disaggregated data is only available in respect of the tax relief for contributions to retirement annuity contracts, RACs. RACs are personal pensions used by the self-employed and by employees who are not in pensionable employment. The data are as follows:
|
Estimated Costs
|
|
1997/98
|
1998/99
|
1999/2000
|
2000/01
|
2001
|
‘Retirement Annuity Contracts’ available to the self-employed and to employees not in occupational pension schemes
|
€91.3m
|
€116.2m
|
€180.8m
|
€205m
|
€170m
|
Numbers
|
72,200
|
92,900
|
104,500
|
109,300
|
109,600
|
For the short income tax year of 2001 a distribution by income ranges of the claim amounts, amounts of tax relief and average deductions for tax relief for retirement annuity contracts is contained in the following table.
Income Tax 2001 (short "year")
Retirement Annuity — by range of Gross Income
|
Range of Gross Income
|
Totals
|
From
|
To
|
Number of cases
|
Amount of deduction
|
Reduction in tax
|
Average deduction
|
|
|
|
€
|
€
|
€
|
—
|
6,000
|
1,258
|
1,301,889
|
76,588
|
1,035
|
6,000
|
8,000
|
1,217
|
1,131,858
|
159,747
|
930
|
8,000
|
10,000
|
1,976
|
2,066,245
|
318,130
|
1,046
|
10,000
|
12,000
|
2,779
|
3,131,978
|
538,747
|
1,127
|
12,000
|
15,000
|
5,489
|
6,725,589
|
1,228,558
|
1,225
|
15,000
|
17,000
|
4,446
|
5,613,493
|
1,067,199
|
1,263
|
17,000
|
20,000
|
7,513
|
10,476,115
|
2,039,761
|
1,394
|
20,000
|
25,000
|
12,222
|
19,723,266
|
4,505,791
|
1,614
|
25,000
|
27,000
|
4,567
|
8,276,351
|
2,214,991
|
1,812
|
27,000
|
30,000
|
6,350
|
12,331,704
|
3,457,396
|
1,942
|
30,000
|
35,000
|
9,441
|
20,838,925
|
6,506,746
|
2,207
|
35,000
|
40,000
|
7,942
|
20,490,572
|
7,354,258
|
2,580
|
40,000
|
50,000
|
11,427
|
37,038,299
|
14,847,501
|
3,241
|
50,000
|
60,000
|
6,807
|
29,985,541
|
12,417,840
|
4,405
|
60,000
|
75,000
|
5,741
|
35,653,618
|
14,883,125
|
6,210
|
75,000
|
100,000
|
4,543
|
41,479,867
|
17,310,850
|
9,131
|
100,000
|
150,000
|
3,951
|
56,115,725
|
23,514,956
|
14,203
|
150,000
|
200,000
|
1,753
|
38,561,305
|
16,149,432
|
21,997
|
over
|
200,000
|
2,635
|
98,693,919
|
41,399,977
|
37,455
|
Totals
|
|
102,057
|
449,636,259
|
169,991,594
|
4,406
|
On the other hand, with regard to occupational pensions, that is, schemes set up by the employer, the figures in respect of employee and employer contributions are particularly tentative and are available only in aggregate form.
Tax relief for pension contributions by employees is normally given by way of a deduction from total income in arriving at income for tax purposes, that is, the income for tax purposes of employees is net of their pension contributions, the "net pay" arrangement. The employer's contributions are an allowable deduction from profits and are not specifically recorded in Revenue statistics. However, provisions were included in Finance Act 2004 with a view to improving data quality and transparency without overburdening taxpayers-employers. The Act includes provisions that require employers to provide data on superannuation contributions in the P35 form to be filed by employers in February 2006. The following table outlines the very tentative figures currently available to the Revenue Commissioners.
Income Tax Relief relating to Pension Contributions
|
Estimated Cost
|
Income Tax Relief
|
1997/98
|
1998/99
|
1999/2000
|
2000/01
|
2001
|
Contributions by employers*
|
€436m
|
€533m
|
€595m
|
€646m
|
€498m
|
Contributions by employees*
|
€257m
|
€329m
|
€421m
|
€472m
|
€389m
|
Numbers of employees contributing to approved superannuation schemes**
|
not available
|
not available
|
569,220
|
629,800
|
670,500
|
Exemption of Net Income of Approved Superannuation Funds (Contributions Plus Investment Income Less Outgoings)*
|
€823m
|
€967m
|
€1,226m
|
€1,292m
|
€938m
|
* These are tentative estimates.
** Calendar year figures sourced from annual reports of the Pensions Board 2001 was a "short" tax year from April to December. The latest data available is for years up to 2001. PRSAs were not introduced until 2002.