Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The purpose of the amendment in one respect, and the Minister referred to it, is to ensure that pension funds are not snared by the effect of the new regime regarding IREFs. It is the case that pension funds very often invest in Irish property through an Irish regulated fund, often because banks prefer, for example, to lend to a regulated fund rather than to pension funds directly. Ensuring that there is not any unintended cross-over here is important. The fundamental pillar of taxation's interface with pension funds is that they are taxed at the point of exit, and pension funds are in enough difficulty, as we all read on a regular basis, in particular defined benefit schemes, without imposing a taxation burden on them, which would only have the direct consequence of reducing the benefits ultimately paid out to pensioners.

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