Finian McGrath (Dublin North Central, Independent)
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Question 119: To ask the Minister for Finance if he will support a matter (details supplied). [42260/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In my 2010 Budget Statement I said that I accepted the Commission on Taxation's recommendation that retirement lump sums below €200,000 should not be taxed. I further indicated that the tax treatment of retirement lump sums above €200,000 would be considered in the Government's National Pensions Framework. This position is reflected on page 41 of the Framework document published in March 2010 which states that "arrangements for the tax treatment of lump sums greater than €200,000 would be considered and developed during the implementation of this framework"

As indicated in the National Pensions Framework, there are a number of fundamental issues which have yet to be considered in this process, including, among other things, the appropriate rate of tax (standard, higher or other) that should apply to lump sum payments in excess of €200,000.