I propose to take Questions Nos. 185 and 206 together.
Under statutory pension schemes and pension schemes approved by the Revenue Commissioners there is no liability to income tax in respect of retirement gratuities or lump sums paid to members of such schemes on retirement. Provided the individual referred to in the question is a member of such a scheme and the lump sum payment complies with Revenue rules in this area, there is no liability to income tax on the retirement lump sum payment. In this regard, it should be noted that the tax arrangements for retirement lump sums apply in respect of pension schemes in both the public and private sectors.
As I mentioned in my Budget Speech on 7 April last, the Commission on Taxation is examining various aspects of pension tax treatment, including the treatment of retirement lump sum payments and I expect to be dealing with the Commissions' recommendations in the 2010 Budget in December.