Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

137. To ask the Minister for Finance further to Parliamentary Question No. 61 of 2 December 2015, if progress has been made on allowing for bona fide transfers of pensions while safeguarding against avoidance schemes; and if he will make a statement on the matter. [38311/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The transfer of the deferred benefits of a member of an occupational pension scheme or a Personal Retirement Savings Account (PRSA) contributor's PRSA fund to an overseas pension arrangement is permitted, subject to the transfer complying with the Occupational Pension Schemes and Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations, 2003 and Revenue requirements. The Regulations are under the remit of the Minister for Social Protection and prescribe the conditions for transfers to arrangements established outside the State.

I am informed by the Revenue that many transfers of pension benefits overseas are made for legitimate reasons and are fully compliant with the transfer Regulations and Revenue requirements. The issue of seeking to recoup the tax relief provided to such individuals in building up their pension benefits here does not, therefore, arise.

Since 2012, all overseas pension transfer requests must be accompanied by a declaration signed by the individual concerned to the effect that the transfer is for bona fide reasons and conforms to all of the relevant transfer obligations.

Since 2014 Revenue has been involved in an ongoing compliance program in relation to the transfer of pension funds off-shore with the objective of seeking to ensure the legitimacy of such transfers. Seeking to move pension funds or PRSAs overseas in an effort to circumvent the requirements of Irish tax legislation may fall foul of the conditions under which they were approved by Revenue and that this could result in the withdrawal of approval, the effect of which would be the claw back of the tax relief previously given.

My Department is engaged in an ongoing review of the area of pension transfers abroad in conjunction with Revenue, the Department of Social Protection and the Pensions Authority with a view to establish potential additional safeguards in this area.

As set out in A Roadmap for Pensions Reform 2018–2023 published last February, the Government is currently reviewing the Pensions system more generally.