Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I have questions on subheads A8 and A9. Perhaps the Minister will supply a detailed note to the committee on these subheads. The Estimates never before provided a figure for liabilities under Chapter 2C of the Taxes Consolidation Act 1997. Although nobody can predict the ultimate figure, the estimated figure is €1 million. The Act places joint liability for taxes due on the trustees of pension schemes where an individual's pension benefit from all sources exceeds €2 million. While this liability has not arisen to date, a provision of €1 million is being made for 2015. The threshold value for a pension scheme has decreased enormously from €5 million, to €3.5 million and now to €2 million. The pensions value for retiring senior civil servants is probably far higher than €2 million. Some people will retire on pensions of €100,000 - I am not saying that includes anybody in this room - and the ultimate value of that pension could amount to more than €2 million depending on the individual's life expectancy. We are into a new era in which legislation that rightly applies to people in the private sector is correspondingly applying to those in the public sector. However, the idea that the taxpayer should be liable for any tax due because an individual's pension is valued at more than €2 million is difficult to accept. Surely the liability for any tax due on an individual's pension fund should fall to that individual rather than the junior clerical officers who are paying for it through their taxes.

Perhaps I am misreading the matter but I ask the Minister to clarify why he is making this provision and the circumstances behind his decision. He is probably taking a prudent approach, and the liability might arise this year. I do not mind if he takes the time to prepare a detailed note on the matter. Has he estimated how many public servants in retirement have pension funds valued at in excess of €2 million? There must be some because this provision would otherwise not be necessary. I suspect he has information on the matter given that it is a new provision. I will take whatever cursory evidence he has available now but I also ask for a comprehensive note.