Written answers
Tuesday, 13 November 2007
Department of Finance
Pension Provisions
9:00 pm
Róisín Shortall (Dublin North West, Labour)
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Question 132: To ask the Tánaiste and Minister for Finance if, in respect of appendix D of the Green Paper on pensions, he will provide the same information in respect of PRSAs and RACs for 2004 and subsequent years if available; and if he will make a statement on the matter. [28725/07]
Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the latest relevant information available is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2004. RACs and PRSAs are available to the self-employed and to employees not in occupational pension schemes.
The information is set out in tables following this reply which provide the number of cases, amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges. The information is based on income returns contained in Revenue records at the time the data were compiled for analytical purposes, representing about 96% of all returns expected. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.
| INCOME TAX 2004 | ||||||
| Personal Retirement Savings Accounts — by range of Gross Income | ||||||
| Range of gross income | Totals | |||||
| From | To | Number of cases | Amount of deduction | Reduction in tax | Gross Tax * | Reduction in tax as % of Gross Tax |
| € | € | € | € | € | % | |
| — | 9,000 | 70 | 93,541 | 1,358 | 1,358 | 100.0 |
| 9,000 | 10,000 | 23 | 34,212 | 4,084 | 4,151 | 98.4 |
| 10,000 | 12,000 | 47 | 59,668 | 8,782 | 14,345 | 61.2 |
| 12,000 | 15,000 | 109 | 156,084 | 23,463 | 60,472 | 38.8 |
| 15,000 | 17,000 | 108 | 156,647 | 26,451 | 76,749 | 34.5 |
| 17,000 | 20,000 | 218 | 313,198 | 56,805 | 230,599 | 24.6 |
| 20,000 | 25,000 | 413 | 690,775 | 135,922 | 665,317 | 20.4 |
| 25,000 | 27,000 | 172 | 287,233 | 56,570 | 378,181 | 15.0 |
| 27,000 | 30,000 | 284 | 523,396 | 118,565 | 732,503 | 16.2 |
| 30,000 | 35,000 | 489 | 1,152,111 | 347,802 | 1,748,498 | 19.9 |
| 35,000 | 40,000 | 441 | 1,248,937 | 423,812 | 2,141,621 | 19.8 |
| 40,000 | 50,000 | 714 | 2,339,244 | 792,111 | 4,750,534 | 16.7 |
| 50,000 | 60,000 | 616 | 2,500,273 | 830,654 | 5,568,932 | 14.9 |
| 60,000 | 75,000 | 696 | 3,534,383 | 1,381,517 | 8,683,997 | 15.9 |
| 75,000 | 100,000 | 688 | 4,800,375 | 1,999,963 | 13,239,785 | 15.1 |
| 100,000 | 150,000 | 479 | 5,027,306 | 2,111,215 | 15,236,926 | 13.9 |
| 150,000 | 200,000 | 196 | 3,179,530 | 1,334,563 | 10,016,144 | 13.3 |
| 200,000 | 250,000 | 97 | 2,387,407 | 1,000,621 | 6,516,038 | 15.4 |
| Over | 250,000 | 188 | 6,011,514 | 2,524,836 | 24,927,049 | 10.1 |
| Totals | 6,048 | 34,495,834 | 13,179,094 | 94,993,199 | 13.9 | |
| * "Gross tax" means the tax that would be due before relief is allowed for retirement annuity deductions | ||||||
| *Figures for PRSAs reflect the relative early stage of the scheme which was introduced in 2002 |
| INCOME TAX 2004 | ||||||
| Retirement Annuity — by range of Gross Income | ||||||
| Range of gross income | Totals | |||||
| From | To | Number of cases | Amount of deduction | Reduction in tax | Gross Tax * | Reduction in tax as % of Gross Tax |
| € | € | € | € | € | % | |
| — | 9,000 | 1,110 | 1,765,598 | 100,854 | 102,717 | 98.2 |
| 9,000 | 10,000 | 328 | 473,530 | 50,209 | 57,629 | 87.1 |
| 10,000 | 12,000 | 801 | 1,200,100 | 159,282 | 233,815 | 68.1 |
| 12,000 | 15,000 | 1,768 | 2,856,885 | 429,099 | 888,466 | 48.3 |
| 15,000 | 17,000 | 1,584 | 2,707,813 | 413,367 | 1,051,539 | 39.3 |
| 17,000 | 20,000 | 3,071 | 5,511,150 | 965,686 | 2,972,946 | 32.5 |
| 20,000 | 25,000 | 6,644 | 12,238,635 | 2,317,360 | 9,500,847 | 24.4 |
| 25,000 | 27,000 | 3,053 | 6,086,998 | 1,181,864 | 5,673,140 | 20.8 |
| 27,000 | 30,000 | 4,871 | 10,061,022 | 2,170,195 | 11,018,835 | 19.7 |
| 30,000 | 35,000 | 8,440 | 19,287,364 | 5,246,701 | 26,229,043 | 20.0 |
| 35,000 | 40,000 | 8,222 | 21,768,107 | 6,367,368 | 34,470,680 | 18.5 |
| 40,000 | 50,000 | 14,592 | 46,359,976 | 14,805,949 | 85,717,764 | 17.3 |
| 50,000 | 60,000 | 12,061 | 45,846,330 | 14,774,520 | 97,776,506 | 15.1 |
| 60,000 | 75,000 | 13,518 | 67,197,523 | 25,455,241 | 157,205,196 | 16.2 |
| 75,000 | 100,000 | 11,856 | 85,513,976 | 35,192,079 | 215,796,004 | 16.3 |
| 100,000 | 150,000 | 8,570 | 108,705,843 | 45,430,331 | 264,196,851 | 17.2 |
| 150,000 | 200,000 | 3,429 | 73,550,192 | 30,834,464 | 174,218,301 | 17.7 |
| 200,000 | 250,000 | 2,052 | 63,087,562 | 26,460,842 | 141,462,364 | 18.7 |
| Over | 250,000 | 4,526 | 224,633,570 | 94,263,399 | 669,190,258 | 14.1 |
| Totals | 110,496 | 798,852,174 | 306,618,810 | 1,897,762,901 | 16.2 | |
| * "Gross tax" means the tax that would be due before relief is allowed for retirement annuity deductions |
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