Taxes Consolidation Act 1997 section 848AA

Payment of tax credits

Section 848AA provides for the payment of pension-related tax credits by the Revenue Commissioners directly to a pension administrator, where the individual is entitled to those credits and the administrator complies with the notification requirements of section 848AB.

• Where an individual becomes entitled to a tax credit and an additional tax credit in respect of a pension subscription, and the pension administrator complies with section 848AB, Revenue must pay both credits directly to the administrator.
• On receipt, the administrator must immediately treat those tax credits as an additional voluntary contribution (AVC), a PRSA contribution, or a premium under a retirement annuity contract (RAC), as appropriate, made by the individual.
• The pension subscription, to the extent it does not exceed €7,500, and the amount of the tax credits are disregarded for the purposes of any claim by the individual for tax relief under Chapters 1, 2, 2A and 2B of Part 30.
• The mechanism ensures that the tax credits are channelled back into the individual's pension product rather than being paid to the individual directly.