Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 55:

In page 22, between lines 15 and 16, to insert the following:"(c) in section 787O—

(i) in subsection (1)—

(I) in the definition of "uncrystallised pension rights", by substituting "on that date;" for "on that date.", and

(II) by inserting the following definition:

" 'vested RAC' means a relevant pension arrangement of a kind referred to in paragraph (b) of the definition of that term in this subsection in respect of which-

(a) payment of the annuity to the individual entitled to the annuity under the contract has not commenced, or

(b) a transfer has not been made under section 784(2A),

on or before the date on which the individual attains the age of 75 years.",

and

(ii) by inserting the following after subsection (5):

"(6) Where an individual of a kind referred to in the definition of 'vested RAC' attains the age of 75 years prior to the date of passing of the Finance Act 2016, the relevant pension arrangement is deemed to become a vested RAC on the date of passing of that Act.",

(d) in section 787R—

(i) in subsection (5), by substituting the following for paragraph (b):

"(b) where the benefit crystallisation event is an event of a kind described at subparagraph (b), (ba) or (c) of paragraph 2 of Schedule 23B, refuse to transfer an amount to the individual, or to any of the funds referred to in the said subparagraph (b), refuse to make assets of the PRSA referred to in the said subparagraph (ba) available to the PRSA contributor or, as the case may be, refuse to make a payment or transfer referred to in the said subparagraph (c),",

(ii) by inserting the following after subsection (5):

"(5A)(a) In this subsection—

'relevant administrator' means—

(i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of ‘vested PRSA’ in section 790D(1), the administrator of that vested PRSA, and

(ii) in the case of a vested RAC within the meaning of section 787O(1), the person with whom the individual (referred to in the definition of 'vested RAC' in that section) made the annuity contract;

'relevant person' means—

(i) in the case of a vested PRSA of a kind referred to in paragraph (c) of the definition of 'vested PRSA' in section 790D(1), a PRSA contributor of a kind referred to in that paragraph, and

(ii) in the case of a vested RAC within the meaning of section 787O(1), an individual of a kind referred to in the definition of 'vested RAC' in that section;

'date of the benefit crystallisation event’ means, as the case may be, the date the relevant person attains the age of 75 years or, where the relevant person attains that age prior to the date of passing of the Finance Act 2016, the date of passing of that Act.

(b) Notwithstanding subsection (4), where a benefit crystallisation event of a kind referred to in subparagraph (bb) or (bc), as the case may be, of paragraph 2 of Schedule 23B occurs in relation to a relevant person, the relevant person shall, within the period of 30 days from the date of the benefit crystallisation event, provide a declaration containing the details referred to in subsection (4) to the relevant administrator.

(c) Where a relevant person fails to comply with paragraph (b), section 787Q shall apply to the benefit crystallisation event referred to in that paragraph as if the condition referred to in subsection (2)(b) of that section is met.",

and

(iii) in subsection (6), by substituting "subsections (4), (5) and (5A)" for "subsections (4) and (5)",(e) in section 787S, by substituting the following for subsection (5):

"(5) Where any item—

(a) has been incorrectly included in a return as a chargeable excess, or

(b) has been included in a return as a chargeable excess in accordance with the application of paragraph (c) of subsection (5A) of section 787R in circumstances where, if a declaration referred to in paragraph (b) of that subsection had been provided to the relevant administrator (within the meaning of that subsection), no chargeable excess or a lesser chargeable excess would have arisen in respect of the benefit crystallisation event concerned,

then, on a case being made, an officer of the Revenue Commissioners may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the administrator of a relevant pension arrangement or the individual or, where the provisions of section 787R(2A) apply, whether of the subsequent administrator, fund administrator, relevant member or non-member, as the case may be, are, so far as possible, the same as they would have been if the item had not been so included.",".