Richard Bruton (Dublin North Central, Fine Gael)
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Question 89: To ask the Minister for Finance the latest estimate of the number of beneficiaries and the cost of tax relief on private pension contribution; the numbers and value of relief by type of pensions (details supplied); the persons paying tax at the standard rate of tax and persons paying at the top rate, to persons making contributions to PRSA, to persons making contributions to additional voluntary contribution schemes and to persons claiming relief on contributions of more than 15% gross earnings. [20568/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The latest figures available are for what is termed the "short" income tax year from April to December 2001. They are contained in the 2003 Revenue Commissioner's report. The total cost of tax relief on pensions contributions is tentatively estimated by the Revenue Commissioners at approximately €2 billion. This total figure is broken out as follows both in terms of numbers where available and in terms of costs:

This cost covers tax relief on contributions by employers, employees and self-employed and the exemption from income and gains in the pension fund. It should be noted that these costs are very tentative and that efforts are being made to improve information on the cost of tax relief for pensions.

It is not possible to provide disaggregated figures on the take-up of the tax relief for all pension contributions as it is not captured in such a way as to make this possible. Disaggregated data is only available in respect of the tax relief for contributions to retirement annuity contracts, RACs. RACs are used by the self-employed and by employees who are not in pensionable employment. The data is as follows:

For the short income tax year of 2001, distribution by income ranges of the claim amounts, amounts of tax relief and average deductions for tax relief for retirement annuity contracts are contained in the table below.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 90: To ask the Minister for Finance his estimate of the cost of increasing pension relief to a standard credit equivalent to relief at 42% plus 2% health levy plus social insurance levy 3%/4% to the appropriate ceiling. [20569/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Tax relief on individual pension contributions is allowed at a taxpayer's marginal tax rate, which is the standard or higher rate as appropriate in each case. It is assumed that the change mentioned by the Deputy is to provide tax relief at the top rate of tax for all pension contributions by individuals, including those currently relieved at the standard rate. It is not possible to provide an estimate in respect of employee and employer contributions to occupational pensions because the relevant data in relation to contributions is not captured in such a way as to provide a dedicated basis for compiling this information. Tax relief for pension contributions by employees is normally given by way of a deduction from total income in arriving at income for tax purposes. This means the income for tax purposes of employees is net of their pension contributions, which is the net pay arrangement. An employer's contributions are an allowable deduction from profits and are not specifically recorded in Revenue statistics.

Provisions were included in Finance Act 2004 requiring employers to provide data on superannuation contributions in the P35 form to be filled by employers in February 2006. Preliminary information should become available in mid-2006, bearing in mind the Revenue Commissioners have to carry out a programme to check the quality, consistency and accuracy of the returns. These changes will yield additional information on the overall cost of tax relief for pension contributions. As the returns will be aggregated at employer level, however, they will not provide a precise basis for measuring the potential impact on the Exchequer of proposals for changes at individual level.

For self-employed and certain other employees in pensionable employment, there is data available on relief on contributions for retirement annuity contracts, RACs, for the short tax year 2001. RACs are subject to a current contribution cap of €254,000. On that basis, the full year cost to the Exchequer, adjusted for a 12-month year, of the change mentioned in relation to the income tax change is tentatively estimated at about €23 million. It could, however, be considerably higher if the change resulted in new pension contributors claiming the relief. Generally, relief from the health levy and PRSI is available to employees only. It is not possible to estimate the cost of extending the relief to employers and the self employed as figures for their current liabilities in respect of these are not currently available.

The operation of and adjustments to the PRSI system fall within the remit of my colleague, the Minister for Social and Family Affairs. As such, questions relating to the matter should be directed to him.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 91: To ask the Minister for Finance the cost of making tax credits (details supplied) refundable. [20575/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Tax relief for mortgage interest and health insurance already operate as, in effect, refundable tax credits as relief is given at source to all, irrespective of tax liability. I am advised by the Revenue Commissioners that the cost of making refundable the unused portion of the tax credits for home carers, one-parent families, widowed persons and rent paid in private tenancies is broadly in the region of €100 million annually. Tax relief for health expenses is allowable as a deduction against income at a taxpayer's marginal rate for annual expenses incurred in excess of €125 per person. There is no specified limit to the amount that a person may claim. Accordingly, the extent to which individual claims might exceed the tax liability arising in each case cannot be sufficiently measured centrally within Revenue to provide the necessary statistical basis on which to estimate the potential cost to the Exchequer of refunding the tax equivalent of the unused portion of claims.

The relevant information is not readily available and could not be obtained without conducting a protracted investigation of the Revenue's records. In this regard, the Deputy will note that in 2001, the latest year for which actual data are available, 105,600 medical expenses claims were allowed.