Results 17,501-17,520 of 27,019 for speaker:Michael Noonan

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: A group representing the charities came to me with this proposal which I thought was an interesting one. The Deputy might recall that when I presented the 2011 budget, we indicated that we were considering this as an option and we gave other charities one year to make submissions. The effect is, in some ways, logistical. Up until now one received relief at the marginal rate, but the relief...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: One last point, I said the effect was logistical. The big benefit charities see in this in a situation where they receive thousands or tens of thousands of contributions is that Revenue will settle with one cheque. They will not have to count all of the individual contributions and everybody seems to be happy. We did this at their request and gave them one year to consider the matter....

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: The film industry has broadly welcomed the changes to the film relief provisions. The issue of timing of the payment will be dealt with in regulations. This is an important matter for film producers. My Department and the Revenue Commissioners have committed to engaging with film producers to ensure the regulations will reflect requirements, that the tax credit will be paid at a time that...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I do not believe that AVCs will be accessed universally by people with debt problems or financial crises. Many of the funds performed well below expectations and people say: "I made a bad decision in putting these AVCs in." The Deputy should not be surprised to find people pull out AVCs to buy a new car. It will not be motivated simply by debt. Some of these under-performed and people...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I do not believe that is right either. Internationally, the tax policy on pensions is that one either taxes on the way in or the way out. If one gives tax relief at the marginal relief on the way in, one is entitled to take it back on the way out. That is the way things work. It is not a question of having an incentive or disincentive. Many people have been seeking this and many Deputies...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: One does not get relief on the way in either from PRSI or USC. One gets the marginal rate of 20% or 41%. We are applying the same to the AVC on the way out.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: That depends on the pension scheme. The level of contribution and the level of benefit in many pension schemes of which we would all be aware are not directly related. In all the public service schemes on an actuarial basis, the level of contribution would not have supported the level of pension until very recently. There would have been a divergence of a very wide margin on that. The...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: Let us talk our way through it. I do not have typical profiles of persons who contribute to additional voluntary contributions, AVCs, but from constituency experience, many of the people I come across who have AVCs are women whose career was interrupted because they spent some time looking after family or people who returned home after several years working abroad who wanted to enhance their...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: On the issue of what tax applies to contributions to pension funds, it is the marginal rate of tax. If someone who is a 20% taxpayer is putting in money, that is their relief. If someone is a 41% taxpayer, that is their relief. On the withdrawal of the AVCs, the same rules apply. If one is a standard rate taxpayer, one pays tax at the standard rate. If one is a 41% taxpayer, one pays...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I move amendment No. 27: In page 28, subsection (6)(b), to delete lines 22 to 29 and substitute the following: "(b) Where on or after 6 February 2011 and before the date of passing of this Act one or more than one relevant option is exercised by an individual, or an individual has one or more than one vested PRSA, and in the exercise of the relevant option or options or in the vesting of the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I move amendment No. 29: In page 28, subsection (6)(b)(i), to delete lines 37 to 39 and substitute the following: "(II) the ring-fenced amount or, as the case may be, each ring-fenced amount shall thereupon become a non ring-fenced amount,".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I move amendment No. 33: In page 29, subsection (6)(b)(ii), to delete lines 1 to 4 and substitute the following: "(II) the ring-fenced amount or, as the case may be, so much of each ring-fenced amount determined in accordance with paragraph (c) shall, to the extent of the excess of the relevant amount over €63,500 thereupon become a non ring-fenced amount.".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: I move amendment No. 35: In page 29, subsection (6), between lines 4 and 5, to insert the following:"(c) For the purposes of giving effect to paragraph (b)(ii)(II), where more than one vested PRSA has a ring-fenced amount the individual shall determine how much of each ring-fenced amount shall become a non ring-fenced amount.".

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: Applying the USC and PRSI in addition to an income tax charge would mean a rate of deduction of 52% where a USC of 7% and PRSI of 4% are added to the higher income tax rate of 41%. My purpose in providing access to AVC savings was with a view to enabling such access in a limited way while at the same time not incentivising it. Many of the representations I have received on this issue over...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: The Deputy would pay tax and the USC.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: No.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: On occupational pensions.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: The Deputy will recall the earlier amendment made to the Bill which provided that, depending on what on one's level of pension, the USC would be higher, for example, 7% rather than 4% if one was above the level of €65,000.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: Yes.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Michael Noonan: The Deputy could argue it is an incentive but that is not the way I see it. Deciding to tax at the marginal rate of 41% is a disincentive. The Deputy can compare that with the rate a person would be charged on the pension subsequently and he can see there is an advantage in terms of the rates applied, but whether it is the 41% rate as against whatever it would be, for example, a 48% rate,...