TAC considers treatment of TD’s forgone pension entitlements

Feb 01, 2021

A recently published Tax Appeals Commission determination considered the entitlement of a TD to tax relief on a gift to the state of a foregone ministerial pension. The TD had received a certificate from the Minister for Finance conferring tax relief on the gift of the foregone pension. However, Revenue disputed the tax treatment of the pension foregone and the Tax Appeal Commissioner determined no entitlement to tax relief on the gift. 

In determination 11TACD2021 the Appeal Commissioner found that the Appellant had disposed of his right to a future pension stream when forgoing amounts due from his ministerial pension, as opposed to having made a contemporaneous gift of money. It was determined that he was not entitled to relief for a gift of money made to the Minister for Finance under section 483 TCA 1997, accordingly. Similarly, as the pension foregone was not payable to him, he couldn't be assessed to tax on that portion of his ministerial pension under section 112 TCA 1997.