Seán Barrett (Dún Laoghaire, Fine Gael)
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Question 138: To ask the Minister for Finance his views on introducing a tax deferred incentivised disability savings plan similar to the plan introduced in Canada in 2008 to enable families with disabled children to provide financially for their children's futures; and if he will make a statement on the matter. [24583/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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There are various provisions within the tax code where a person who is permanently incapacitated, either physically or mentally, to the extent where they are unable to maintain themselves, may be able to claim one or more of the special tax allowances available. In addition, parents/guardians and persons who care for dependent relatives may also qualify for relief from tax. Details of these reliefs and exemptions can be found on the Revenue Commissioners' website at the following link: http://www.revenue.ie/en/personal/circumstances/disability-information.html.

Within the various allowances and exemptions relating to people with disabilities are two measures which relate to savings.

· Tax relief is available for payments into a properly drawn up Deed of Covenant in favour of a permanently incapacitated individual. However, a parent cannot generally make a covenant in favour of his or her own permanently incapacitated minor child (aged under 18 years)

· People who are permanently incapacitated may be exempt from having Deposit Interest Retention Tax (DIRT) deducted from their interest income, provided their gross income is exempt from tax or marginally over the exemption limit.

As you are aware, all taxes are reviewed annually in the context of the Budget and Finance Bill. However, I have no plans at this time to make the requested changes.

Finian McGrath (Dublin North Central, Independent)
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Question 139: To ask the Minister for Finance if he will respond to a query (details supplied). [24584/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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On the issue of retiring teachers and the tax treatment of retirement lump sums, the position is that 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 question are members of such schemes and the lump sum payments comply with the relevant legislation and 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. Regarding the position of pensioners in relation to income tax and the income levy, the position is unchanged since the Finance (No. 2) Act 2008.