Written answers

Thursday, 24 November 2016

Department of Finance

Revenue Commissioners Investigations

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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77. To ask the Minister for Finance if the Office of the Revenue Commissioners is examining the transfer of pensions offshore; the number and value of such transfers currently being examined; the penalties imposed on any transfers to date; and if he will make a statement on the matter. [36748/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by Revenue that they have been engaged since 2014 in a 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 off-shore is for bona fide reasons and does not contravene tax legislation or undermine pension tax policy. This compliance program is on-going.

From 2012 to date a total of 565 notifications to transfer pension arrangements off-shore have been received by Revenue and the value of the funds transferred are in excess of €73million. It is important to bear in mind that transfers of pensions offshore are made for bona fide purposes and are fully compliant with tax legislation and pension tax policy.

I am further informed by Revenue 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 Revenue as an exempt approved scheme or the conditions under which a Personal Retirement Savings Account (PRSA) product received Revenue approval.

Pension tax legislation does not provide for any penalties for non-compliance in this area. The sanction available is the withdrawal of the approval of the pension scheme as an exempt approved scheme or the withdrawal of the approval of the PRSA product. The effect of such sanctions is the claw back of the tax relief previously given.  As of this point in time no such withdrawal of approval has taken place.

As is established practice, my Department will liaise as appropriate with Revenue and other relevant Departments in relation to this issue.

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