David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 196: To ask the Minister for Finance the take up rate on SSIA holders, who are taxed at 20%, of the PRSA incentive; the number of SSIA holders eligible for this scheme; the number who have availed of it; and if he will make a statement on the matter. [43276/06]

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

I am advised by the Revenue Commissioners that, based upon the latest information available, 5,413 individuals have invested SSIA funds into approved pensions under the Pensions Incentive Tax Credits scheme up to end December 2006. Two-thirds of all SSIAs will mature in the early months of 2007.

In order to avail of the incentive, the following criteria must be met:

One must be an SSIA holder;

The SSIA holder's gross income (i.e. before all deductions) in the tax year before the year in which the SSIA matures does not exceed €50,000; and

The SSIA funds are invested within 3 months of the maturity of the SSIA.

In addition, and in accordance with my statement of 29 September 2006, SSIA funds invested in pension based products should remain there for at least 12 months in order to retain the tax credit. This requirement is being provided for in legislation in this year's Finance Bill.

I am also informed by the Revenue Commissioners that there is no precise information available on the number of SSIA holders who are eligible for the scheme so that it would not be feasible to provide a reliable estimate of the "take-up" rate of the scheme.

Jim O'Keeffe (Cork South West, Fine Gael)
Link to this: Individually | In context

Question 197: To ask the Minister for Finance the expected rise in income tax receipts in 2007 as a result of termination of SSIA accounts; and if these moneys are being allocated to particular purposes. [4170/07]

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

In making the Budget income tax forecast for 2007, my Department estimated that there would be a gain to income tax in 2007 of approximately €600 million over 2006 arising from the discontinuance of the tax credit contribution to SSIAs and also the exit tax yield from maturing SSIAs.

It should be noted that in 2007 the gain arising from the ending of the SSIA scheme will be broadly offset by the cash-flow loss from the ending of the transitional arrangements for the movement of the payment date for corporation tax from a prior to a current year basis which was introduced in Budget 2002.