Enda Kenny (Mayo, Fine Gael)
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Question 203: To ask the Minister for Finance if he will provide details of the provision within the additional voluntary contribution pension scheme which allows for the spreading back of the pension for long periods to allow for dependent's benefits; and if he will make a statement on the matter. [3427/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that, in general, where special contributions, that is additional voluntary contributions not made on a regular basis, are made by a member of an occupational pension scheme he or she may, subject to the relevant age related and overall earnings limits,

(i) claim tax relief on the contribution in the tax year in which the contribution is made, or

(ii) where the member has unused relief for the previous tax year, claim that unused relief if the special contribution is paid and the claim for relief is made before the return filing date of 31 October (with a further short period of grace where the return is made electronically via ROS).

Where relief for the full special contribution cannot be absorbed in either the tax year in which the contribution is made, or the previous tax year as outlined above, any excess can be carried forward and claimed in subsequent tax years, again subject to the relevant limits.

Section 774 of the Taxes Consolidation Act 1997 provides for an exception to this general rule in a number of circumstances, whereby relief for special contributions may be "spread back" and allocated to earlier years, subject to the overall statutory time limit of 4 years for repayment claims.

The circumstances are: a) where the special contribution is deducted from a lump sum payable on retirement to provide for dependents' (spouses and children) benefits, b) where the special contribution is made on retirement to pay back previous refunds of contributions or benefits made to an employee from the pension scheme where the employee had previously left the pension scheme, and c) where the special contribution is made on retirement in circumstances where an employee opted, under the rules of the pension scheme, before 6 February 2003, to purchase additional years service in respect of actual service by the employee before he or she joined the pension scheme.