Dáil Éireann Debate, Thursday - 19 May 2011
31 Deputy Joanna Tuffy asked the Minister for Finance the amount of tax foregone to the State in tax reliefs given to those who put moneys into the private pension funds which are to be the subject of a levy to fund the jobs initiative, for the years 2000 to 2010, inclusive, in tabular form; and if he will make a statement on the matter. [12217/11]
Amharc ar fhreagraThe following tables provide a breakdown of the estimated cost of tax and PRSI reliefs relating to private pension contributions for 2006, 2007 and 2008, the latest year for which the most up-to-date data is available together with estimates of the notional or imputed cost of the tax exemption for the investment income and gains of approved superannuation funds. Corresponding estimates of the cost of tax reliefs are also provided for 2005 to the extent that it has been possible to provide them on a consistent and comparable basis. Figures have been rounded where appropriate. As similar data sources would not be available for the years prior to 2005, it is not possible to provide costings on a similar basis for those years.
I am advised by the Revenue Commissioners that while corresponding updates of the cost figures are not yet available for the tax year 2009 the necessary work of assembling the basic data to enable this to be done is ongoing. No data are available for 2010.
It should also be noted that while the Deputy has asked for data in relation to pension funds to which the pension levy announced in the recent Jobs Initiative would apply, the estimates of the costs of relief on employee pension contributions cover such contributions made by public servants whose pension schemes are largely unfunded as well as private sector employees. It would not be possible to provide a breakdown of those cost estimates as between the public and private sector.
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.
|
Estimated costs |
Numbers* |
|
|
€ million |
||
|
Employees’ Contributions to approved Superannuation Schemes |
423 |
565,200 |
|
Employers’ Contributions to approved Superannuation Schemes |
90 |
296,500** |
|
Estimated cost of exemption of employers’ contributions from employee BIK |
370 |
296,500 |
|
Retirement Annuity Contracts (RACs) |
358 |
121,200 |
|
Personal Retirement Savings Accounts (PRSAs) |
42 |
32,900 |
|
Estimated cost of PRSI and Health Levy relief on employee contributions |
Not available |
Not available |
|
Exemption of investment income and gains of approved Superannuation Funds |
1,050 |
*Numbers as included in P35 returns from employers to Revenue for 2005.
**Numbers of employees for whom employers are contributing to occupational pension funds as included in P35 returns to Revenue for 2005.
|
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 |
|
Exemption of investment income and gains of approved Superannuation Funds |
1,200 |
*Numbers as included in P35 returns from employers to Revenue for 2006.
**Numbers of employees for whom employers are contributing to occupational pension funds as included in P35 returns to Revenue for 2006.
|
Estimated costs |
Numbers* |
|
|
€ 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 |
|
Exemption of investment income and gains of approved Superannuation Funds |
900 |
*Numbers as included in P35 returns from employers to Revenue for 2007.
**Numbers of employees for whom employers are contributing to occupational pension funds as included in P35 returns to Revenue for 2007.
|
Estimated costs |
Numbers* |
|
|
€ 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 |
|
Exemption of investment income and gains of approved Superannuation Funds |
685 |
*Numbers as included in P35 returns from employers to Revenue for 2008. Figures are as verified to date but may be subject to revision.
**Numbers of employees for whom employers are contributing to occupational pension funds as included in P35 returns to Revenue for 2008. Figures are as verified to date but may be subject to revision.
