John O'Mahony (Mayo, Fine Gael)
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Question 156: To ask the Minister for Finance if he will tax the gratuity payments of members of the Garda Síochána who have completed 30 years' service; and if he will make a statement on the matter. [18873/09]

John O'Mahony (Mayo, Fine Gael)
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Question 157: To ask the Minister for Finance if he will tax the gratuities for public and civil servants; and if he will make a statement on the matter. [18874/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 156 and 157 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 individuals referred to in the questions are members of such schemes and the lump sum payments comply with Revenue rules in this area, there is no liability to income tax on the retirement lump sums. 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.

As I mentioned in my Budget Speech on 7 April last, the Commission on Taxation is examining various aspects of pension tax treatment, including the treatment of retirement lump sum payments, and I expect to be dealing with the Commission's recommendations in the 2010 Budget in December.