Lenihan satisfied with law to block pension tax abuse

FINANCE Minister Brian Lenihan has insisted that legislation to prevent the abuse of tax reliefs for pension purposes is working, despite a recent report indicating otherwise.

In the Finance Act 2006, the Government introduced measures to limit the amount of tax relief that could be claimed on private pensions. The measures meant that once an individual’s pension fund exceeded e5m, tax relief on pension contributions would no longer be available. The move was aimed at preventing high-earners from taking advantage of the taxsystem.

But concerns about the effectiveness of the legislation were raised by the Covered Institution Remuneration Oversight Committee, the state-appointed body which examined pay structures for banks covered by the Government’s guarantee scheme.