S.I. No. 428/2004 - Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations, 2004

The Minister for Social and Family Affairs, in exercise of the powers conferred on her by sections 2 (as amended by section 13 of the Social Welfare (Miscellaneous Provisions) Act, 2004 (No. 9 of 2004)) and 4 (as amended by section 12 of the Social Welfare (Miscellaneous Provisions) Act, 2002 (No. 8 of 2002)) of the Social Welfare (Consolidation) Act, 1993 (No. 27 of 1993) hereby makes the following Regulations:

Citation and Construction.

1. (1) These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations, 2004.

(2) These Regulations and the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2003 shall be construed together as one and may be cited as the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 to 2004.

Definitions.

2. In these Regulations “the Principal Regulations” means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 (S.I. 312 of 1996).

Exclusions from reckonable income.

3. Chapter 2 of Part II of the Principal Regulations is amended by inserting the following after article 27:

“Exclusions from reckonable income

27A. For the purposes of the definition of ‘reckonable income’ in section 2(1), the following items shall not be included in reckonable income in respect of any contribution year commencing on or after 1 January 2004:

(a) any payment in respect of a foreign life policy referred to in section 730J of the Act of 1997,

(b) the amount of any gain arising on a disposal of a foreign life policy referred to in section 730K of the Act of 1997,

(c) any payment received in respect of a material interest in an offshore fund referred to in section 747D of the Act of 1997, and

(d) the amount of any gain arising in respect of a disposal of a material interest in an offshore fund referred to in section 747E of the Act of 1997.”.

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GIVEN under the Official Seal of the Minister for Social and Family Affairs, this 7th day of July, 2004.

MARY COUGHLAN,

Minister for Social and Family Affairs.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

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GIVEN under the Official Seal of the Minister for Finance, this 8th day of July, 2004.

CHARLIE Mc CREEVY,

Minister for Finance.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations amend the Social Welfare (Consolidated Contributions and Insurability) Regulations so as to provide for an exemption on the return on certain foreign funds and life policies from PRSI. These Regulations are required so as to harmonise the treatment, for PRSI purposes, with similar domestic funds and policies.