Terence Flanagan
Ceist:141 Deputy Terence Flanagan asked the Minister for Finance if he will respond to a matter (details supplied); and if he will make a statement on the matter. [42609/09]
Amharc ar fhreagraTuesday, 24 November 2009
Ceisteanna (109)
Freagraí scríofa
The position is that 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 lump sum payments comply with the legislative requirements and Revenue rules in this area.
Any remaining pension funds paid, for example, by way of retirement annuity or other arrangement are taxable at the beneficiary's marginal income tax rate as are drawdowns from Approved Retirement Funds (ARFs), if the person concerned qualifies for this option in relation to his or her remaining pension funds.