Written Answers Nos. 54-57
54. Deputy Bernard J. Durkan asked the Minister for Finance if and or when the Revenue Commissioners will be in a position to come to an agreement in the form of deferred payments or liability in the matter of outstanding income tax liability including penalties in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [49026/12]
Amharc ar fhreagraThis is a matter for the Revenue Commissioners. I am advised by Revenue that numerous efforts were made to meet the taxpayer concerned to give him an opportunity to discuss his affairs and resolve the outstanding issues. However, to date no engagement with the taxpayer has been forthcoming. Revenue also afforded the taxpayer and his agent the opportunity to file correct returns but to date this has not happened. I am advised by Revenue that no request has been received from the taxpayer or agent seeking an arrangement. If the taxpayer concerned engages with Revenue in a meaningful manner, then Revenue will work with the taxpayer to resolve the issue. If the taxpayer wishes to further discuss the outstanding issues, he should contact the Collector General's Office at (061) 488000.
55. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form for each covered institution, the number of retired employees currently being paid a pension; if he will show separately the number currently in the employment of the covered institution but who will in due course be entitled to a pension, of between €100,000 to €200,000, between €200,001 and €300,000, between €300,001 and €400,000, between €400,001 and €500,000 and in excess of €500,000. [49037/12]
Amharc ar fhreagraUnfortunately, it is not possible to supply the information the Deputy has requested at this time. My officials and officials in the covered institutions (in conjunction with certain of the trustees of the underlying pension schemes) are considering a number of issues, including the provisions of the Data Protection Act, which may prevent me from releasing some (or all) of the data which you have requested. Notwithstanding these issues, the production of this data is a time consuming task for certain of the covered institutions and the collection of the data has not yet been completed by them. I will write to the Deputy as soon as I am in a position to do so.
56. Deputy Michael McGrath asked the Minister for Finance if he or his officials have had direct contact with Allied Irish Bank in relation to the commitment given by the Chairman of the bank at the last annual general meeting to contact the former chief executives of the bank to request a voluntary reduction in their pension entitlements; and if he will make a statement on the matter. [49038/12]
Amharc ar fhreagraI understand that Department of Finance officials have been in contact with AIB in relation to this matter. I am informed that AIB has written to former senior executives at the bank requesting a voluntary contribution or reduction in their pension. This process is ongoing as other individuals are written to including former staff of EBS. I understand that this is a technically complex matter from a Tax and Revenue perspective which will require further analysis. However, at a minimum, former executives should they choose could make an after-tax contribution of a portion of their pension. As this is a voluntary request and given that there is a statutory prohibition on reducing pension amounts once the relevant pension is in payment, it will be a matter for the individuals concerned to agree to the amount and scope of the proposal.
57. Deputy Michael McGrath asked the Minister for Finance if he will provide detailed information on the €1.1 billion of gross loan assets transferred to the Allied Irish bank defined benefit pension scheme in August 2012 including details of the nature of the assets concerned and details of any impairment provision made against such assets. [49039/12]
Amharc ar fhreagraAIB confirmed in August 2012 that it agreed the transfer of €1.1 billion nominal of Irish loan assets to the AIB pension fund. I am informed by the Bank that the transfer of assets to the pension fund was undertaken to facilitate the early retirement component of the voluntary severance program of the bank. If the transfer of assets had not taken place, the early retirement component of the voluntary severance could not have proceeded as it would have required a cash contribution from the bank. It has been suggested by some that this transaction was designed to fund the grotesque pensions of former chief executives of the bank. This is not consistent with the facts and is a deliberate misrepresentation of the position. Given the need for cost savings in the bank, the alternative to the approach adopted by the bank would have been compulsory redundancy and retirement for serving staff. If this approach had been adopted, the former senior executives would continue to have been paid their massive pensions. The voluntary severance scheme in the bank overall is expected to result in annual savings to AIB in excess of €200 million which is a critical component of AIB's return to viability. Additionally, as part of its continuing strategy to meet non-core deleveraging targets as part of PLAR 2011, this transaction facilitated the deleveraging of a substantial non-core portfolio and was executed at a substantial discount to par value. AIB has informed me that it is not disclosing the discount level, but it was in line with the levels assumed as part of the PCAR exercise in 2011. The transaction was completed on an arm’s length basis with both the bank and the pension trustees conducting independent valuations of the assets. This transaction was approved by the Board and the Bank's deleveraging committee which includes non-voting observers from the Department of Finance and the Central Bank. The bank also consulted with the Pensions Board as part of the process.
