Schedule 23 Occupational pension schemes
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PART 1 General
Application for approval of a scheme
1 An application for the approval for the purposes of Chapter 1 of Part 30 (in this Schedule referred to as "Chapter 1") of any retirement benefits scheme shall be made in writing by the administrator of the scheme to the Revenue Commissioners [in such form and manner as they may specify]1 before the end of the first year of assessment for which approval is required, and shall be supported by-
(a) a copy of the instrument or other document constituting the scheme,
(b) a copy of the rules of the scheme and, except where the application is being made on the setting up of the scheme, a copy of the accounts of the scheme for the last year for which such accounts have been made up, and
(c) such other information and particulars (including copies of any actuarial report or advice given to the administrator or employer in connection with the setting up of the scheme) as the Revenue Commissioners may consider relevant.
Amendments
1 Inserted by Finance Act 2005 section 21(1)(f)(i) from 1 January 2005.
What is the procedure for making an application for approval of an occupational pension scheme?
(1) An application for approval of a retirement benefits scheme (section 771) must be made by the scheme's administrator (section 770) before the end of the first tax year for which approval is required....
2 In the case of every approved scheme, the administrator of the scheme and every employer who pays contributions under the scheme shall, within 30 days from the date of the notice from the inspector requiring them so to do-
(a) furnish to the inspector a return containing such particulars of contributions paid under the scheme as the notice may require;
(b) prepare and deliver to the inspector a return containing particulars of all payments under the scheme, being-
(i) payments by means of the return of contributions (including interest on contributions, if any),
(ii) payments by means of the commutation of, or in place of, pensions or other lump sum payments, ...1
(iii) other payments made to an [employer, and,]2
[(iv) payments by means of pension, gratuity or other like benefits;]3
(c) furnish to the inspector a copy of the accounts of the scheme to the last date previous to the notice to which such accounts have been made up, together with such other information and particulars (including copies of any actuarial report or advice given to the administrator or employer in connection with the conduct of the scheme in the period to which the accounts relate) as the inspector considers relevant.
Amendments
1 Deleted by Finance Act 2005 section 21(1)(f)(ii)(I) from 1 January 2005.
2 Substituted by Finance Act 2005 section 21(1)(f)(ii)(II) from 1 January 2005.
3 Para (b)(iv) inserted by Finance Act 2005 section 21(1)(f)(ii)(III) from 1 January 2005.
What obligations does the administrator of an approved occupational pension scheme have to furnish information and accounts to Revenue?
(2) An approved scheme is a retirement benefits scheme that has been approved by the Revenue Commissioners (section 770). The administrator of an approved scheme, and any employer who contributes to the scheme, must, within 30 days of an inspector's ...
2A Any such return, copy of accounts, information and particulars required to be provided under paragraph 2 shall be in such form and manner as may be specified in the notice under that paragraph.
Amendments
Para 2A inserted by Finance Act 2005 section 21(1)(f)(iii) from 1 January 2005.
2B In the case of an approved scheme in respect of which the administrator has to deliver annual scheme accounts to the Revenue Commissioners, the administrator shall deliver the accounts by such electronic means as are required or approved by the Commissioners.
Amendments
Para 2B and heading inserted by Finance Act 2010 section 16(1)(c) as respects approved schemes whose accounting year ends on or after 1 January 2011.
Information about schemes other than approved schemes or statutory schemes
3 (1) This paragraph shall apply as respects a retirement benefits scheme which is neither an approved scheme nor a statutory scheme.
(2) It shall be the duty of every employer-
(a) if there subsists in relation to any of that employer's employees any such scheme, to deliver particulars of that scheme to the inspector within 3 months beginning on the date on which the scheme first comes into operation in relation to any of that employer's employees, and
(b) when required to do so by notice given by the inspector to furnish within the time limited by the notice such particulars as the inspector may require with regard to-
(i) any retirement benefits scheme relating to the employer, or
(ii) the employees of that employer to whom any such scheme relates.
What obligations does every employer have with employees in an approved scheme as respects sending information to the inspector?
(3.2) Every employer with employees in an unapproved scheme must, within three months of the scheme coming into operation with regard to those employees, send details of the scheme to the inspector....
(3) It shall be the duty of the administrator of any such scheme, when required to do so by notice given by the inspector, to furnish within the time limited by the notice such particulars as the inspector may require with regard to the scheme.
Responsibility of administrator of a scheme
4 (1) Where the administrator of a retirement benefits scheme defaults, cannot be traced or dies, the employer shall be responsible in place of the administrator for the discharge of all duties imposed on the administrator under Chapter 1 and this Schedule and shall be liable for any tax due from the administrator in the capacity as administrator.
Is an employer responsible for discharging the duties of a scheme’s administrator in relation to a scheme?
(4.1) The employer is responsible for discharging the duties of a scheme's administrator in relation to the scheme, if the administrator defaults, cannot be traced or dies. The employer is also liable for any tax owed by the administrator in his capa...
(2) No liability incurred under Chapter 1 or this Schedule by the administrator of a scheme, or by an employer, shall be affected by the termination of the scheme or by its ceasing to be an approved scheme or an exempt approved scheme, or by the termination of the appointment of the person mentioned [in section 772(2)(c)(ii).]1
Amendments
1 Substituted by Finance Act 2005 section 21(1)(f)(iv) from 1 January 2005.
Is a tax charge on an employer of the scheme’s administrator affected by the termination/cessation of a scheme or the termination of a scheme’s administrator?
(4.2) A tax charge on an employer or the scheme's administrator is not to be affected by the fact that a scheme has terminated or ceased to be approved, or that the appointment of a scheme's administrator has been terminated....
(3) References in this paragraph to the employer include, where the employer is resident outside the State, references to any factor, agent, receiver, branch or manager of the employer in the State.
Regulations
5 (1) The Revenue Commissioners may make regulations generally for the purpose of carrying Chapter 1 and this Schedule into effect.
(2) Every regulation made under this paragraph shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
PART 2 Charge to tax in respect of unauthorised and certain other payments
6 This Part shall apply to any payment to or for the benefit of an employee, otherwise than in course of payment of a pension, being a payment made out of funds which are or have been held for the purposes of a scheme which is or has at any time been approved for the purposes of Chapter 1.
What rules apply relating to a charge to tax in respect of unauthorised and certain other payments?
(6) These rules apply where a payment which is not a pension payment is made from approved pension scheme funds to an employee, for example, where an employee obtains a payment from the pension fund before retirement.
7 Where the payment-
(a) is not expressly authorised by the rules of the scheme, or
(b) is made at a time when the scheme is not approved for the purposes of Chapter 1 and would not have been expressly authorised by the rules of the scheme when it was last so approved,
the employee (whether or not he or she is the recipient of the payment) shall be chargeable to tax on the amount of the payment under Schedule E for the year of assessment in which the payment is made.
Is an employee charged to tax on a payment made which is not expressly authorised in the scheme rules or made when the scheme has not been approved?
(7) If the payment is not expressly authorised by the scheme rules, or is made when the scheme has not been approved, the employee is chargeable to tax under Schedule E on the payment for the tax year in which the payment is made (whether or not he/s...
8 Any payment chargeable to tax under this Part shall not be chargeable to tax under section 780 or 781.
Where I am charged to tax on unauthorised or unapproved payments, can I also be charged to tax on the repayment of my contribution to the scheme or a pension commutation payment?
(8) Where you are an employee who is charged to tax on a payment under para 7, you will not be charged to tax on that payment as a repayment of your contributions to the scheme (section 780) or a pension commutation payment (section 781).
9 References in this Part to any payment include references to any transfer of assets or other transfer of money's worth.
