Dinny McGinley (Donegal South West, Fine Gael)
Link to this: Individually | In context

Question 147: To ask the Minister for Finance the cost to the Exchequer of the retirement lump sums, in view of the fact that these are tax free; and if he will make a statement on the matter. [38271/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that it is not possible to provide a precise estimate of the cost sought by the Deputy in regard to the payment of tax free lump sums because the relevant data are not captured in such a way as to make this possible.

The only relevant data available relate to the estimated cost of tax forgone to the Exchequer derived at aggregated level from very tentative estimates of aggregated amounts paid out under pension schemes including both pension payments and lump sum payments. The tentative estimate of cost based on the taxpayer's marginal rate for 2002, the latest year available, is €147 million.