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€24.5m yielded by Revenue in compliance campaign for those with two pensions

Those in receipt of both State pensions and private occupational pensions are liable to pay income tax if their total income is above a certain level.

THE REVENUE COMMISSIONERS office has yielded some €24.5 million in tax, interest and penalties in a compliance campaign targeted those in receipt of both state pensions and private occupational pensions.

In late 2011, Revenue undertook to amend pension recipients’ tax records from the Department of Social Protection  with up-to-date pension information for the year 2012 onwards to ensure future tax compliance.

Anyone receving a state pension, wit no other soruces of income, is not liable for income tax on it. However, if a person is in receipt of an additional income source like an occupational pension from a former employer, they may be liable to pay tax on their state pension if their total income is above a certain level.

Revenue also began, in March 2012, to examine PAYE taxpayers who had state pensions that had not been returned for prior years.

“As is normal practice for any compliance work that they undertake, the Commissioners focussed initially on the highest risk cases, which are those cases where the annual non-Department of Social Protection income exceeded €50,000,” Minister Michael Noonan explained in response to a recent parliamentary question.

They then moved to those whose non-State income was between €40,000 and €50,000 and then to those whose non-State income was between €30,000 and €40,000. In March 2013, all cases involving self-assessed taxpayers who had not declared their state pensions and had annual non-State income in excess of €30,000 were examined.

Where underpayments of tax were discovered, those concerned were notified and discussions were held with regard to the collection of any arrears.

Noonan sad that, as of 16 December this year, 10,302 examinations have been concluded. The total yield is €24.5 million with approximately 500 cases still under enquiry.

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