Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Is there anything that could be done? For example, the guy who owns a corner shop in west Donegal and has approximately €2 million invested in the company knows that if he draws it down, he will have to pay a 40% tax rate. He may be thinking of retiring but his pension pot might be small. He has not put a huge amount of money into his pension and his pension pot may only be at €200,000 at that point, which is a decent pension pot for many people. However, today, that man can put €1.8 million into his pension pot and the effective tax rate he will pay on the first €500,000 of that when he retires will be 12%.