Michael McGrath (Cork South Central, Fianna Fail)
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89. To ask the Minister for Finance the total value of pension assets transferred abroad by trustees since 2010; and if he will make a statement on the matter. [9832/15]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that precise details on the value of pension funds transferred abroad are only available since 2012. This is due to the fact that before 2012 very few notifications in relation to transferring pension funds abroad were received and centralised records were not maintained until the start of 2012. From 2012, both Revenue and the pensions industry, noticed a considerable increase in requests by pension fund holders to transfer funds abroad.

From 2012 to date the total value of pension assets in respect of which a notification of transfer abroad was received by Revenue amounts to €56,631,383 (not all transfer notifications may have actually been proceeded with).

I am advised by the Revenue Commissioners that they have been engaged since 2014 in an on-going compliance program that involves visits to pension providers, pension administrators and pension trustees in relation to the transfer of pension funds off-shore. The objective of the compliance program is to ensure that the purpose of any transfer of pension funds offshore is for bona fide reasons and does not contravene tax legislation or undermine pension tax policy.

I am further informed by the Revenue Commissioners that moving pension funds off-shore in an effort to circumvent the requirements of Irish pension tax legislation may fall foul of the conditions under which a pension scheme was approved by the Revenue Commissioners as an exempt approved scheme or the conditions under which a Personal Retirement Savings Account (PRSA) product received Revenue approval.  This could result in the withdrawal of the approval of an occupational pension scheme in accordance with the provisions of section 772(5) of the Taxes Consolidation Act (TCA) 1997 or the withdrawal of the approval of the PRSA product under section 787K (3) and (4) TCA 1997. Any such withdrawal of approval could trigger significant tax liabilities on the sums moved off shore and the withdrawal or claw back of tax reliefs. Moreover, in such cases and depending on the circumstances and the motivation of the individual concerned, the possibility also arises that such transactions may also fall foul of the legislation designed to counter tax avoidance transactions.

In addition to Revenue's compliance program, the Department of Finance has initiated a review of the whole area of pension transfers abroad in conjunction with Revenue, the Department of Social Protection and the Pensions Authority.  Revenue's findings from the on-going compliance programme will feed into and inform that review.