Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

One of the changes to section 17 is the annual rate of imputed distribution applying to AMRFs and vested PRSAs. What is the motivation for that reduction from 5% to 4% for AMRFs with a value of less than €2 million? It was 3% prior to the Finance Bill 2011 and increased to 5%. We know that people can hold on to these funds and not draw down for retirement benefit. The idea of this 5% imputed distribution is to ensure that these are drawn down or at least that Revenue takes that portion of tax which would apply if they were being drawn down.