787AA. Taxation of payments from a PEPP

(1) Subject to subsections (2), (3) and (4)—

(a) the amount or value of any assets that a PEPP provider makes available to, or pays to, a PEPP saver or beneficiary or to any other person, including any annuity where the whole or part of the consideration for the grant of the annuity consisted of assets which, at the time of application of the said assets for the purchase of the annuity, were PEPP assets, shall, notwithstanding anything in section 18 or 19, be treated as a payment to the PEPP saver of emoluments to which Schedule E applies and, accordingly, the provisions of Chapter 4 of Part 42 shall apply to any such payment or amount treated as a payment, and

(b) the PEPP provider shall deduct tax from the assets at the higher rate for the year of assessment in which the assets are made available unless the PEPP provider has received from the Revenue Commissioners a revenue payroll notification (within the meaning of section 983) for that year in respect of the PEPP saver.

(2) A PEPP provider shall be liable to pay to the Collector-General the income tax which the PEPP provider is required to deduct from any assets of a PEPP by virtue of this section and the individual beneficially entitled to assets held in a PEPP, including the personal representatives of a deceased individual who was so entitled prior to that individual’s death, shall allow such deduction; but where there are no funds or insufficient funds available out of which the PEPP provider may satisfy the tax required to be deducted, the amount of such tax for which there are insufficient funds available shall be a debt due to the PEPP provider from the individual beneficially entitled to the assets in the PEPP or from the estate of the deceased individual, as the case may be.

(3) Subsection (1) shall not apply where the assets made available from a PEPP are—

(a) an amount made available, at the time assets of the PEPP are first made available to the PEPP saver, by way of lump sum not exceeding 25 per cent of the value of the assets in the PEPP at that time,

(b) an amount transferred to an approved retirement fund in accordance with section 787AB,

(c) an amount made available to the personal representatives of the PEPP contributor in accordance with section 787AB(1),

(d) an amount the PEPP provider makes available from the PEPP assets, to such extent as may be necessary, for the purpose of discharging a tax liability in relation to a PEPP saver, under the provisions of Chapter 2C of this Part, in connection with a relevant payment to the PEPP saver, or

(e) an amount made available from a PEPP, where the PEPP is a vested PEPP (within the meaning of section 790D(1)), for the purpose of—

(i) reimbursing, in whole or in part, an administrator (within the meaning of section 787O(1)) in respect of the payment by that administrator of income tax charged on a chargeable excess in respect of the PEPP contributor, or

(ii) payment by the PEPP provider of the amount, or part of the amount, of the appropriate share (within the meaning of section 787R(2A)(b)) of a non-member (within the meaning of section 787O(1)) (being the PEPP saver) of income tax charged on a chargeable excess,

under the provisions of Chapter 2C of this Part.

(4) For the purposes of this Chapter, the circumstances in which a PEPP provider shall be treated as making assets of a PEPP available to an individual shall include—

(a) the making of a relevant payment by the PEPP provider,

(b) any circumstances whereby assets cease to be assets of the PEPP,

(c) any circumstances whereby assets cease to be beneficially owned by the PEPP saver, and

(d) any circumstances in which an annuity paid from the assets in a PEPP is—

(i) an annuity for the life of the PEPP saver or the PEPP beneficiary concerned,

(ii) an annuity for the life of the PEPP saver concerned or the widow, widower or surviving civil partner of the PEPP saver concerned, or

(iii) an annuity—

(I) for a term certain (not exceeding 10 years) notwithstanding the death of the PEPP saver or the PEPP beneficiary within that term,

(II) payment of which may be terminated or suspended on marriage or remarriage or in other circumstances, or

(III) which can be assigned by will or by distribution on intestacy.

(5) Without prejudice to the generality of subsection (4), the circumstances in which a PEPP provider shall, for the purposes of this Chapter, be treated as making assets of a PEPP (including a vested PEPP within the meaning of section 790D(1)) available to an individual shall include the use of those assets in connection with any transaction which would, if the assets were assets of an approved retirement fund, be regarded under section 784A as giving rise to a distribution for the purposes of that section and the amount to be regarded as made available shall be calculated in accordance with that section.

(6) For the purposes of subsection (9), the PEPP provider of a vested PEPP of a kind referred to in paragraph (b) of the definition of “vested PEPP” in section 790D(1) shall be treated as making the assets of the PEPP available to the PEPP contributor on the date the contributor attains the age of 75 years or, where the contributor attained the age of 75 years prior to the date of passing of the Finance Act 2022, on the date of passing of that Act.

(7) At any time when a PEPP provider—

(a) is not resident in the State, or

(b) is not trading in the State through a fixed place of business,

the PEPP provider shall, in relation to the discharge of all duties and obligations relating to a PEPP which are imposed on the PEPP provider by virtue of the PEPP Regulation, this Chapter, Chapter 2C and section 125B of the Stamp Duties Consolidation Act 1999—

(i) enter into a contract with the Revenue Commissioners enforceable in a Member State of the European Communities in relation to the discharge of those duties and obligations and in entering into such a contract the parties to the contract shall acknowledge and agree in writing that—

(I) it shall be governed solely by the laws of the State, and

(II) that the courts of the State shall have exclusive jurisdiction in determining any dispute arising under it,

or

(ii) ensure that there is a person resident in the State, appointed by the PEPP provider, who will be responsible for the discharge of all of those duties and obligations and shall notify the Revenue Commissioners of the appointment of that person and the identity of that person.

(8) The Revenue Commissioners may by notice in writing require a PEPP provider or the person appointed in accordance with subsection (7)(ii), as the case may be, to provide, within 30 days of the date of such notice, such information and particulars as may be specified in the notice as they may reasonably require for the purposes of this Chapter, and, without prejudice to the generality of the foregoing, such information and particulars may include—

(a) the name, address and PPS Number of the PEPP saver,

(b) the name, address and PPS Number of any person to whom any payments have been made, or to whom any assets have been made available, by the PEPP provider, and

(c) the amount of any payments and the value of any assets referred to in paragraph (b).

(9) Notwithstanding subsection (1), where assets of a PEPP are treated under subsection (4) or subsection (6) as having been made available to an individual, the provisions of section 784A(4) shall apply as if assets of that PEPP at the time of death of that individual were assets of an approved retirement fund.