David Cullinane (Waterford, Sinn Fein) | Oireachtas source

I wish to comment on enhanced pension rules. This morning, I gave the example of a lot of the very senior broadcasters in RTÉ. It has been reported on several occasions that many of them set up these companies. They are on six-figure salaries and they pay corporation tax rather than income tax on a lot of the money they earn. We were told this morning that this is not being done to avoid paying tax. I am trying to understand why it is being done. Given what I have seen in other areas, it strikes me that this is a mechanism by means of which one can avoid paying tax. Is it the case that different rules apply in terms of how much of the profits made by such companies can be used to pay pension contributions? I am trying to understand the incentive involved.