Jimmy Deenihan (Kerry North, Fine Gael)
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Question 99: To ask the Minister for Finance if he will tax or levy the Defence Forces gratuity; and if he will make a statement on the matter. [12448/09]

Finian McGrath (Dublin North Central, Independent)
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Question 105: To ask the Minister for Finance if he will advise on a query (details supplied). [12618/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 99 and 105 together.

Under statutory pension schemes and pension schemes approved by the Revenue Commissioners there is no liability to income tax in respect of retirement gratuities or lump sums paid to members of such schemes on retirement. Provided the employees and individuals referred to in the questions are members of such a scheme and the lump sum payments comply with Revenue rules in this area, there is no liability to income tax on the retirement lump sum payments. In this regard, it should be noted that the tax arrangements for retirement lump sums apply in respect of pension schemes in both the public and private sectors.

The House will appreciate that I do not propose to comment on what may or may not be contained in the forthcoming supplementary budget. I have said in response to recent similar questions that I have no plans at this point in time to alter the tax treatment of retirement lump sum payments. This remains the position.