Michael Creed (Cork North West, Fine Gael)
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Question 223: To ask the Minister for Finance the cost to the Exchequer of tax breaks for provision of private pensions in 2008, 2009 and to date in 2010; the cost to the Exchequer of these tax breaks for individuals in 2009 who invested between €1,000 and €5,000 in their pension; between €5,001 and €10,000 in their pension; between €10,001 and €20,000 in their pension; and between €20,001 and €50,000 in their pension; between €50,001 and €500,000 in their pension and between €500,001 and greater in their pension in 2009; and if he will make a statement on the matter. [39393/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The following table provides a breakdown of the estimated cost of tax and PRSI reliefs relating to private pension contributions for 2007, the latest year for which the most up-to-date data is available. Figures have been rounded where appropriate. I am advised by the Revenue Commissioners that while corresponding updates of the cost figures are not yet available for the tax year 2008 the necessary work to enable this to be done is ongoing.

There is not sufficient data yet available to the Revenue Commissioners in relation to pension contributions in 2009 which would allow for full cost figures to be provided. No data is available for 2010. Estimate of the cost of tax and PRSI reliefs on private pension contributions 2007.

**Numbers of employees for whom employers are contributing to occupational pension funds as included in P35 returns to Revenue for 2007. Figures are as verified to date but may be understated and subject to revision. I am also informed by the Revenue Commissioners that it is not possible to provide disaggregated figures in regard to the take-up of the tax relief for all pension contributions across different contribution ranges because the relevant data in regard to contributions is not captured in such a way as to make this possible.

The latest relevant information available in this area is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2007, as returned for that year by individuals in personal income tax returns. This information is set out in the following tables which provide the number of cases as well as amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various contribution ranges.

A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.

The lower aggregate figures for cost and numbers in respect of RACs and PRSAs in the tables below (compared to the slightly higher figures in the preceding table for 2007) are taken directly from filed income tax returns which represent about 90% of all income tax returns expected for 2007. The higher figures in the initial table have, in accordance with normal practice, been grossed-up.

It is not possible to provide corresponding figures in regard to the take-up of the tax relief for pension contributions by employers and employees to occupational pension schemes because the returns are aggregated at employer level and do not provide a precise basis for measuring the distribution of pension tax relief across different income or contribution cohorts.