Revenue Pensions Manual Launched

by Jason Gorringe, Tax-News.com, London

30 July 2007

Ireland's Revenue Commission on Wednesday launched the 2007 Edition of the Revenue Pensions Manual.

The Manual is a technical publication aimed at those working in the pensions industry that explains the requirements for approval of pension schemes, and details the operation of the various tax reliefs associated with these schemes.

Speaking at the launch, which took place at Dublin Castle, Revenue Commission Chairman Frank Daly reflected on the pace of change in pensions, observing that:

“We in Revenue are conscious of our responsibility to provide coherent and timely support to professionals in the pensions industry. As the tax reliefs associated with Revenue approved pension schemes are considerable, a high level of compliance with the legislation is essential. Clear, up to the minute guidance for the industry and for other interested parties is a prerequisite for fostering compliance and this Manual is a significant part of Revenue’s contribution towards achieving this objective."

The manual has now been updated to provide detailed information on the practical operation of recent important changes in tax legislation affecting pensions, including:

• The introduction of a life time limit on individual tax relieved pension funds;
• Tax relief for migrant workers and seconded employees coming to Ireland who wish to continue making contributions to a pension scheme in their own country; and
• Changes to the taxation regime for Approved Retirement Funds.

Commenting with regard to the Tax Relief Reviews undertaken in recent years, Mr Daly told attendees that:

"As everybody here knows, two years ago the Minister for Finance instigated a number of reviews of various tax reliefs, including one dealing with the reliefs available for contributions to Pension Funds. I am pleased to say that the pensions review was completed “in house” and led by Revenue and a Report was presented to the Minister in the latter half of 2005."

"In his Budget speech that year, the Minister announced a number of changes in the legislative framework and these were subsequently enacted in the 2006 Finance Act. This updated Manual provides detailed information on the practical operation of these important recent changes. "

He went on to add that:

"Like so much else today the increasing influence of Europe has led directly to a number of legislative and practice changes in the pensions area and this is reflected in the new Manual. You will find up to date information for example on:

• Transfers of pension rights between various jurisdictions;
• Reliefs available to seconded employees;
• Tax relief for migrant workers (for citizens of European Union Member States moving to Ireland) who wish to continue making contributions to a pension scheme in their own country; and
• Tax reliefs available to cross border pension schemes."

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