Michael Noonan (Limerick City, Fine Gael)

The Deputy is giving me a lot of food for thought with his advocacy. Deputy Fleming spoke about the complexity of the pay slip. I know at least one Deputy in the House who as a form of protection takes his pay slip in his inside pocket when he is going for a pint. If anyone accuses him of earning too much, he produces it and shows how little money he is surviving on to the amazement of the whole pub. Deputy Seán Fleming should try it sometime.

Approved retirement funds, ARFs, are taxed in a different way. No levy was applied to pension funds before this measure was introduced but there was a tax on the imputed draw-down of ARFs. In January, the imputed draw-down was raised from 3% to 5%. I would very much like to see whether there is more scope to raise the imputed draw-down percentage.

I cannot vary the 52% marginal rate, which is the combination of the marginal rate of tax, the universal social charge and PRSI. It is fixed because it applies to everyone, so it is not a possible variable. I am unsure as to whether there is potential scope. The difficulty is that the outgoing Government increased the notional draw-down from 3% to 5% in the last budget. This provision was introduced in January's Finance Bill and the instructions were transferred to Revenue to collect the amount. I do not know whether it has already been collected on some ARFs. Varying the charge mid-year would be difficult technically, since the instruction has been given to the Revenue Commissioners. However, I will consider the suggestion in the context of 2012. I do not know whether the Deputy would be interested in tabling an amendment to the Finance Bill 2011-----

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