George Lee (Dublin South, Fine Gael)
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Question 371: To ask the Minister for Finance further to Parliamentary Question No. 210 of 20 October 2009, his views on amending the legislation to state that at the time the approved retirement fund option is exercised, or at any time before the 75th birthday, the approved minimum requirement funds requirement does not arise; and if he will make a statement on the matter. [38848/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In my reply to the previous question referred to by the Deputy, I explained the circumstances in which a qualifying individual could exercise the Approved Retirement Fund (ARF) option on retirement, including the rationale for and the circumstances in which investment into an Approved Minimum Retirement Fund (AMRF) could arise. In particular, I provided the requested explanation of section 784C(4)(a) of the Taxes Consolidation Act which states, in effect, that the requirement to invest in an AMRF does not arise where an individual is in receipt of specified (pension) income for life of €12,700 at the time the ARF option is exercised.

I have no plans to remove the requirement to invest in an AMRF if the relevant conditions are not met. If, however, the Deputy's concern is that a person who may not satisfy the specified income requirement at the point of retirement may subsequently be in a position to satisfy that requirement but under the existing provisions would not be able to transfer from AMRF to ARF status until age 75, then I will examine that issue in the context of the next Budget and Finance Bill and will bear his views in mind in that regard.

Seán Sherlock (Cork East, Labour)
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Question 372: To ask the Minister for Finance his views on rescinding VAT refund order SI 58/92 (details supplied); and if he will make a statement on the matter. [38858/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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There is provision in Irish legislation for the refund of VAT incurred on the purchase of a new medical instrument or appliance by a person who donates such equipment to a hospital. The main conditions relating to this refund scheme are that:

the appliance or instrument is new and is donated to a hospital;

the appliance costs €25,390 or more in value (exclusive of VAT);

the appliance is designed and manufactured for use solely in medical research or in diagnosis, prevention or treatment of illness;

the appliance is purchased through voluntary donations, such that no part of the funds used in the purchase is provided directly or indirectly by the State, a State body or any public or local authority, and,

the appliance is subject to a recommendation by the Minister for Health and Children that, having regard to the requirements of the health services in the State, a refund of tax would be appropriate.

The VAT refund Order was introduced to help defray the cost of more expensive items purchased by voluntary donations. Items costing less than the threshold of €25,390 are excluded from the relief in order to limit the relief to more expensive medical equipment. The current threshold level has not changed since the refund was introduced in 1987 at £20,000, which was translated to €25,390 to coincide with the introduction of the euro in 2002. Given inflation since the introduction of the current threshold, in real terms the value of threshold has reduced significantly. Taking inflation into account the 1987 threshold would equate to around €46,500 in 2009 values. In this context a greater level of lower priced medical appliances now qualify under the Order than when the relief was originally introduced.

In the circumstances there are no plans to change the current threshold.

Ned O'Keeffe (Cork East, Fianna Fail)
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Question 373: To ask the Minister for Finance if a person (details supplied) in County Cork is receiving a tax credit in respect of their pension payments. [38870/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been informed by the Revenue Commissioners that the person in question is in receipt of a tax credit in respect of their PRSA with Irish Life. If the person has any further queries they should contact: Mr Pearse Penney, South West Region, Revenue House, Cork. Telephone 021 6027266