Finance Act 2014

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Retirement benefits

19. (1) Chapter 1 of Part 30 of the Principal Act is amended in section 776—

(a) in subsection (2)(b) —

(i) by substituting “Subject to paragraph (bb), any contribution,” for “Any contribution,”, and

(ii) by inserting the following after paragraph (ba):

“(bb) (i) In this paragraph—

‘fixed-term employee’ has the meaning assigned to it by section 2 of the Protection of Employees (Fixed-Term Work) Act 2003 ;

‘NUIG’ means the National University of Ireland, Galway;

‘NUIG scheme’ means, as the case may be—

(I) the National University of Ireland, Galway (Closed) Pension Scheme 2010 (Joint Pension Scheme), or

(II) the National University of Ireland, Galway Pension Scheme 2005 (Model Scheme);

‘qualifying period’ means the period beginning on 1 July 2008 and ending on 31 December 2018;

‘relevant period’ means the period beginning on 14 July 2003 and ending on 30 June 2008;

‘relevant year’ means any year which falls wholly or partially within the relevant period;

‘specified employee’ means an individual who was a fixed-term employee of NUIG during the relevant period under a contract of employment which is governed by the Protection of Employees (Fixed-Term Work) Act 2003 .

(ii) This paragraph applies to a contribution, which is not an ordinary annual contribution, paid or borne by a specified employee under the NUIG scheme during the qualifying period in respect of a relevant year, other than such a contribution which is—

(I) treated as an ordinary annual contribution in accordance with subparagraph (i) or (ii)(II) of paragraph (b), or

(II) following an election under subsection (3), is treated for the purposes of this section as paid in the year prior to the year in which it is paid.

(iii) Any contribution to which this paragraph applies, which has not otherwise been deducted as an expense in assessing income tax under Schedule E for any year, shall be treated as an ordinary annual contribution paid in the relevant year.”,

(b) by substituting the following for subsection (2A):

“(2A) (a) Paragraphs (b)(ii) and (bb) of subsection (2) shall operate notwithstanding any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made where the officer or employee makes a claim for relief in respect of a contribution which is not an ordinary annual contribution within 4 years from the end of the year of assessment in which such contribution is paid or borne by the officer or employee and section 865(6) shall not prevent the Revenue Commissioners from making a repayment of tax as a consequence of such a claim, where a valid claim for a repayment of tax (within the meaning of section 865(1)(b)) has been made by the officer or employee.

(b) For the purposes of this subsection, where a contribution to which subsection (2)(bb) applies has been paid or borne by a specified employee before 1 January 2015, it shall be treated as having been paid or borne by the employee in the year of assessment 2014.”,

and

(c) in subsection (3) by substituting “Subject to paragraphs (b), (ba) and (bb) of subsection (2),” for “Subject to paragraphs (b) and (ba) of subsection (2),”.

(2) Chapter 2 of Part 30 of the Principal Act is amended—

(a) in section 784A—

(i) in subsection (1)(d) by substituting “or any assignment of the fund or of assets out of the fund by any person,” for “or any assignment of assets out of the fund”,

(ii) by inserting the following after subsection (1)(d):

“(e) For the purposes of this section, any distribution in relation to an approved retirement fund shall be deemed to have been made by the qualifying fund manager.”,

(iii) in subsection (1B)—

(I) in paragraph (f) by substituting “with that acquisition,” for “with that acquisition, and”,

(II) in paragraph (g) by substituting “property in question, and” for “property in question.”, and

(III) by inserting the following after paragraph (g):

“(h) in the case of the acquisition by the individual beneficially entitled to the assets in the approved retirement fund (in this paragraph referred to as the ‘ARF investor’) of any interest (whether solely or jointly with another person or persons) in units or shares of any description or class (in this paragraph referred to as ‘units’) in any fund, trust or scheme (in this paragraph referred to as a ‘relevant fund’), or sub-fund, sub-trust or sub-scheme of any such relevant fund (in this paragraph referred to as a ‘relevant sub-fund’), whether acquired directly or indirectly, then where the circumstances set out in both of the following subparagraphs (in this paragraph referred to as the ‘circumstances’) arise, namely—

(i) where a relevant pension arrangement (within the meaning of section 787O(1)), a member or holder of which is a person connected (within the meaning of section 10 as it applies for the purposes of the Capital Gains Tax Acts) with the ARF investor, (in this paragraph referred to as the ‘pension investor’), acquires, at any time, any interest (whether solely or jointly with another person or persons) in units in the same relevant fund or relevant sub-fund or in any other relevant fund or relevant sub-fund, whether directly or indirectly, and

(ii) there is any arrangement whereby the value of the units held by the pension investor increases, or may increase in the future, and that increase is attributable in whole or in part, directly or indirectly, to the units held by the ARF investor,

the amount to be regarded as a distribution for the purposes of this section (at the time the circumstances arise) is an amount equal to the value of the assets in the approved retirement fund used in or in connection with the acquisition of the units by the ARF investor.”,

and

(iv) by substituting the following for subsection (3A):

“(3A) Subsection (3) shall not apply where the distribution referred to in that subsection is made for the purpose of—

(a) 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 person beneficially entitled to the assets in the fund, or

(b) payment by the qualifying fund manager 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 person beneficially entitled to the assets in the fund) of income tax charged on a chargeable excess,

under the provisions of Chapter 2C of this Part.”,

and

(b) in section 784C(5) by substituting the following for paragraph (b):

“(b) a payment or transfer, on one occasion only, in any tax year (being a year of assessment for tax purposes) to the individual beneficially entitled to the assets in the fund of an amount that does not exceed 4 per cent of the value of the assets of the fund at the time of the payment or transfer.”.

(3) Chapter 2A of Part 30 of the Principal Act is amended in section 787G—

(a) in subsection (3) by substituting the following for paragraph (f):

“(f) an amount made available from a PRSA, where the PRSA is a vested PRSA (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 PRSA contributor, or

(ii) payment by the PRSA administrator 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 PRSA contributor) of income tax charged on a chargeable excess,

under the provisions of Chapter 2C of this Part.”,

and

(b) in subsection (4A) by inserting “(including a vested PRSA within the meaning of section 790D(1))” after “be treated as making assets of a PRSA”.

(4) Chapter 2C of Part 30 of the Principal Act is amended—

(a) in section 787O—

(i) in subsection (1) by inserting the following definitions:

“‘applied’, in relation to a transfer amount, means the application of the transfer amount in accordance with—

(a) subsection (5), (6), (8) or (9) of section 12 of the Family Law Act 1995 ,

(b) subsection (5), (6), (8) or (9) of section 17 of the Family Law (Divorce) Act 1996 , or

(c) subsection (1), (3), (5) or (6) of section 123 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ,

as the case may be;”,

“‘designated benefit’, ‘retirement benefit’ and ‘transfer amount’ have the meaning assigned to them, respectively, in—

(a) section 12 of the Family Law Act 1995 ,

(b) section 17 of the Family Law (Divorce) Act 1996 , or

(c) section 121 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ,

as the case may be;”,

“‘fund administrator’ means a qualifying fund manager of an approved retirement fund or an approved minimum retirement fund or the PRSA administrator of a vested PRSA (within the meaning of section 790D(1)), as the case may be, (in this definition referred to as the ‘fund’) the beneficial owner of which is a non-member and the assets of which consist, in whole or in part, of—

(a) assets transferred to the fund by virtue of the exercise by the non- member of a relevant option in relation to the transfer arrangement (in this definition referred to as the ‘first-mentioned transfer’), or

(b) assets transferred to the fund which were previously held in another fund or funds the assets of which originated, in whole or in part, from the first mentioned transfer;”,

“‘non-member’, in relation to a relevant pension arrangement, means an individual (other than a dependent member of the family within the meaning of section 2 of the Family Law Act 1995 and section 2 of the Family Law (Divorce) Act 1996 ) in whose favour a pension adjustment order in respect of the retirement benefit of a member of the arrangement has been made;”,

“‘pension adjustment order’ means an order made in accordance with—

(a) section 12 (2) of the Family Law Act 1995 ,

(b) section 17 (2) of the Family Law (Divorce) Act 1996 , or

(c) section 121 (2) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ,

as the case may be, or any variation of such an order made by an order under—

(i) section 18 (2) of the Family Law Act 1995 ,

(ii) section 22 (2) of the Family Law (Divorce) Act 1996 , or

(iii) section 131 (3) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ,

as the case may be, the operation of which has not been suspended (or if suspended, or further suspended, has been revived) or discharged by an order made under any of the relevant provisions referred to in subparagraph (i), (ii) or (iii);”,

“‘relevant member’, in relation to a relevant pension arrangement, means—

(a) a member of a relevant pension arrangement in respect of whose retirement benefit under the arrangement a pension adjustment order has been made in favour of a non-member, or

(b) a member of a relevant pension arrangement to which a sum representing that member’s accrued rights under the relevant pension arrangement referred to in paragraph (a) has been transferred, or subsequently transferred;”,

“‘relevant option’, in relation to a non-member and a transfer arrangement, means the option referred to in section 772(3A), 784(2A) or 787H(1), as the case may be, to the extent that those options refer to a transfer to an approved retirement fund, or where the transfer arrangement is a PRSA, the option to retain the assets of the transfer arrangement in that arrangement (or any other similar arrangement);”,

“‘subsequent administrator’ means the administrator of the transfer arrangement under which the non-member remains entitled to a retirement benefit under the arrangement or in respect of which the non-member’s retirement benefit under the arrangement has crystallised;”,

“‘transfer arrangement’ means a relevant pension arrangement—

(a) to which a transfer amount has been applied to provide a retirement benefit for or in respect of a non-member and includes the relevant pension arrangement of the relevant member where a retirement benefit for or in respect of the non-member is provided under that arrangement of the same actuarial value as the transfer amount, or

(b) to which a sum representing the non-member’s accrued rights under an arrangement referred to in paragraph (a) has been transferred, or subsequently transferred;”,

and

(ii) by substituting the following for subsection (5):

“(5) For the purposes of this Chapter and Schedule 23B, where, on or after 7 December 2005, an individual is a relevant member of a relevant pension arrangement (in this subsection referred to as the ‘arrangement’) then, notwithstanding the pension adjustment order, the administrator of the arrangement shall, in calculating—

(a) the relevant member’s pension rights (within the meaning of section 787P(2)(a)(i)) in respect of the arrangement for the purposes of the statement certifying those rights (referred to in that section), and

(b) the amount crystallised by a benefit crystallisation event occurring on or after 7 December 2005 in relation to the relevant member under the arrangement,

include in those calculations—

(i) the designated benefit payable pursuant to the order, or

(ii) where the transfer amount has been applied, the designated benefit that would otherwise have been payable pursuant to the order if the transfer amount had not been so applied,

as if the pension adjustment order had not been made, and where the administrator is the administrator of a relevant pension arrangement to which a sum representing the relevant member’s accrued rights under the relevant pension arrangement in respect of which the pension adjustment order has been made, has been transferred, or subsequently transferred, in whole or in part, the calculations referred to in paragraphs (a) and (b) shall reflect the sum that would otherwise have been transferred, or subsequently transferred, if no pension adjustment order had been made.”,

(b) in section 787Q—

(i) by inserting the following after subsection (5):

“(5A) (a) Notwithstanding section 59B of the Pensions Act 1990 , where, in accordance with section 787S(3), a non-member’s appropriate share (within the meaning of section 787R(2A)(b)) of tax arising on a chargeable excess is paid by the subsequent administrator, in whole or in part, and the non-member was in receipt of a pension benefit payable from the transfer arrangement at the date the subsequent administrator received the certificate referred to in section 787R(3B), then so much of the tax that is paid by the subsequent administrator shall itself be treated as forming part of the non-member’s appropriate share unless the non-member’s pension benefit payable under the transfer arrangement is reduced so as to fully reflect the amount of tax so paid or the subsequent administrator is reimbursed by the non-member in respect of any tax so paid.

(b) Where, in accordance with section 787S(3), a subsequent administrator or a fund administrator (in this paragraph referred to as the ‘administrator’) is liable to pay the amount of a non- member’s appropriate share (within the meaning of section 787R(2A)(b)) of tax arising on a chargeable excess, or a part of that amount, the administrator shall, for the purposes of payment of the tax, be entitled to dispose of or appropriate such assets of—

(i) the transfer arrangement as represent the non-member’s accrued rights under that arrangement, or

(ii) the approved retirement fund, approved minimum retirement fund (or where the non-member has an approved retirement fund and an approved minimum retirement fund, of both funds) or vested PRSA (or vested PRSAs, where the non-member has more than one vested PRSA), as the case may be, (in this subsection referred to as the ‘fund’),

as are required to meet the amount of the tax so payable and the non-member shall allow such disposal or appropriation.

(c) Where in pursuance of this subsection and section 787S(3) a subsequent administrator reduces a non-member’s pension benefit or disposes of or appropriates an asset of the transfer arrangement, or a fund administrator disposes of or appropriates an asset of the fund, then no action shall lie against the subsequent administrator or the fund administrator in any court by reason of such reduction, disposal or appropriation.”,

and

(ii) by inserting the following after subsection (6):

“(6A) Where the provisions of section 787R(2A) apply in relation to a relevant pension arrangement referred to in subsection (6), then—

(a) where no transfer amount has been applied, or

(b) where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member under the arrangement of the same actuarial value as the transfer amount,

the provisions of subsections (6), (7), (8) and (9) shall apply, as if the references in those subsections to—

(i) the individual were a reference to the relevant member or the non- member, as the case may be, and

(ii) the rules of the scheme were a reference to the rules of the scheme having regard to the provisions of the pension adjustment order.”,

(c) in section 787R—

(i) in subsection (1)(a) by substituting “at the higher rate for the tax year (within the meaning of section 787TA(1)) in which the benefit crystallisation event giving rise to the chargeable excess occurs” for “at the rate of 41 per cent”,

(ii) in subsection (2) by substituting “Subject to subsection (2A)(d), the persons liable” for “The persons liable”,

(iii) by inserting the following after subsection (2):

“(2A) (a) Where an individual is a relevant member of a relevant pension arrangement, income tax charged under subsection (1) (in this subsection referred to as the ‘tax’) in respect of a chargeable excess arising on a benefit crystallisation event in respect of the relevant member under that arrangement shall be apportioned by the administrator between the relevant member and the non-member (in this subsection referred to as the ‘relevant parties’) in accordance with paragraph (b), and the persons liable for the tax so apportioned and the extent of their liability shall be the persons referred to in paragraph (d) and the liabilities referred to therein.

(b) Subject to the assumption in paragraph (c), the tax referred to in paragraph (a) shall be apportioned between the relevant parties such that each party’s share of the tax (in this Chapter referred to as the ‘appropriate share’) shall not exceed such part of the tax as would bear to that tax the same proportion as each party’s share of the retirement benefit (arising under the benefit crystallisation event giving rise to the tax) bears to that retirement benefit, having regard to the designated benefit payable to the non-member pursuant to the pension adjustment order.

(c) The assumption referred to in paragraph (b) is that, where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member, each party’s share of the retirement benefit arising under the benefit crystallisation event giving rise to the tax shall be determined as follows:

(i) in the case of the non-member—

(I) where the relevant pension arrangement referred to in paragraph (a) is a defined benefit arrangement and is the arrangement in respect of which the pension adjustment order has been made, it shall be the designated benefit on which the transfer amount was calculated, and

(II) in any other case, it shall be the transfer amount,

and

(ii) in the case of the relevant member, it shall be an amount equivalent to the amount determined by the formula—

A — B

where—

A is the retirement benefit arising under the benefit crystallisation event giving rise to the tax, and

B is the non-member’s share determined in accordance with clause (I) or (II), as the case may be, of subparagraph (i).

(d) The persons liable for the tax apportioned in accordance with paragraph (b) and the extent of their liability shall be—

(i) the administrator and the relevant member in respect of the relevant member’s appropriate share, and

(ii) (I) where no transfer amount has been applied to provide a retirement benefit for or in respect of the non-member (and notwithstanding the provisions of the pension adjustment order), the administrator and the non-member in respect of the non-member’s appropriate share, or

(II) where a transfer amount has been applied to provide a retirement benefit for or in respect of the non-member and—

(A) the non-member’s retirement benefit under the transfer arrangement has not crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the administrator and the subsequent administrator are the same person (in this section referred to as the ‘alternative circumstance’) at the date of the benefit crystallisation event giving rise to the chargeable excess (in this section referred to as the ‘alternative date’), the subsequent administrator and the non-member in respect of the non-member’s appropriate share, or

(B) the non-member’s retirement benefit under the transfer arrangement has crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the alternative circumstance arises at the alternative date and the non-member is in receipt of a pension payable from the transfer arrangement, the subsequent administrator and the non- member in respect of the non-member’s appropriate share, or

(C) the non-member’s retirement benefit under the transfer arrangement has crystallised at the date the subsequent administrator receives the certificate referred to in subsection (3B) or where the alternative circumstance arises at the alternative date and the non-member has exercised a relevant option under the transfer arrangement, the fund administrator and the non-member in respect of the non-member’s appropriate share,

or

(III) in any other case, the non-member in respect of his or her appropriate share,

and the liability of the persons referred to in subparagraph (i) and in clauses (I) and (II) of subparagraph (ii) shall be joint and several.

(e) Notwithstanding paragraph (d)(ii)(II), the liability of a subsequent administrator or a fund administrator shall not exceed the lesser of the non-member’s appropriate share and—

(i) in the case of a subsequent administrator, the amount or value of the assets in the transfer arrangement (in this subparagraph referred to as the ‘first-mentioned arrangement’) representing the non-member’s accrued rights under the arrangement at the time those rights are transferred to another relevant pension arrangement or at the time the non-member’s retirement benefit under the first-mentioned arrangement crystallise, as the case may be, or

(ii) in the case of a fund administrator, the amount or value of the assets in the approved retirement fund, approved minimum retirement fund (or the aggregate of those amounts or values where the non-member has an approved retirement fund and an approved minimum retirement fund) or vested PRSA (or the aggregate of those amounts or values where the non-member has more than one vested PRSA), as the case may be, at the date the fund administrator receives the certificate or copy certificate referred to in subsection (3C).”,

(iv) by substituting the following for subsection (3):

“(3) A person referred to in subsection (2) or paragraph (d) of subsection (2A) shall be liable for any income tax charged in accordance with subsection (1) or, as the case may be, for the appropriate share of that tax, whether or not that person, or any other person who is liable to the charge, is resident or ordinarily resident in the State.”,

(v) by substituting the following for subsection (3A):

“(3A) The references in subsections (2), (2A)(d) and (3) to income tax charged under subsection (1) or to the appropriate share of that tax, shall be deemed to be references to the amount of income tax so charged or to the appropriate share of that tax, as the case may be, reduced, as appropriate, in accordance with section 787RA.

(3B) Where the provisions of subsection (2A) apply and a transfer amount has been applied, the administrator (other than where the alternative circumstance referred to in subsection (2A)(d)(ii)(II)(A) arises) shall establish the identity of the subsequent administrator and, within 21 days from the end of the month in which the benefit crystallisation event giving rise to the chargeable excess occurs, provide to the subsequent administrator a certificate stating—

(a) the name, address and telephone number of the administrator,

(b) details of the transfer arrangement, where known,

(c) details of the relevant pension arrangement under which the benefit crystallisation event giving rise to the chargeable excess occurred,

(d) the nature of the benefit crystallisation event referred to in paragraph (c) and the date on which it occurred,

(e) the full name, last known address and, where known, the PPS Number of the non-member,

(f) the amount of, and the basis of calculation of, the non-member’s appropriate share, and

(g) such other information and particulars as the Revenue Commissioners may reasonably require for the purposes of this Chapter.

(3C) (a) Where—

(i) the provisions of subsection (2A) apply and a transfer amount has been applied, and

(ii) at the date the subsequent administrator receives the certificate referred to in subsection (3B) the non-member’s retirement benefit under the transfer arrangement has crystallised and the non-member has exercised a relevant option under the transfer arrangement,

then, where the subsequent administrator and the fund administrator are not the same person, the subsequent administrator shall establish the identity of the fund administrator and, within 21 days from receipt of the certificate, forward a copy of the certificate (in this section referred to as the ‘copy certificate’) to the fund administrator.

(b) Where—

(i) the provisions of subsection (2A) apply and a transfer amount has been applied,

(ii) at the date of the benefit crystallisation event giving rise to the chargeable excess tax (in this paragraph referred to as the ‘event’) the non-member’s retirement benefit under the transfer arrangement has crystallised and the non-member has exercised a relevant option under the transfer arrangement, and

(iii) the alternative circumstance referred to in subsection (2A)(d)(ii)(II)(A) arises,

then, where the administrator and the fund administrator are not the same person, the administrator shall establish the identity of the fund administrator and, within 21 days from the end of the month in which the event occurs, provide to the fund administrator the certificate referred to in subsection (3B).

(3D) An administrator, subsequent administrator or fund administrator, as the case may be, shall within 21 days from—

(a) in the case of an administrator (including an administrator who is either or both the subsequent administrator and the fund administrator), the end of the month in which the benefit crystallisation event giving rise to the chargeable excess tax occurs, or

(b) in the case of a subsequent administrator or fund administrator, the date of receipt of a certificate or copy certificate, as the case may be,

inform the non-member by way of a notification in writing of the non- member’s liability for the non-member’s appropriate share of the chargeable excess tax and, where at the time the notification is due to be made the administrator or the subsequent administrator, as the case may be, is aware that the non-member is the person solely liable for the non-member’s appropriate share, inform the non-member as part of the notification of that fact and of the fact that the tax is due and payable by the non-member to the Collector-General in accordance with section 787S(3) within 3 months of the date of the notification.

(3E) Where a notification referred to in subsection (3D) is sent to a non- member in circumstances where the non-member is solely liable for the non-member’s appropriate share of the chargeable excess tax, a copy of the notice shall be sent by the administrator or the subsequent administrator, as the case may be, to the Revenue Commissioners at the same time.”,

and

(vi) by inserting the following after subsection (6):

“(6A) (a) A subsequent administrator or a fund administrator, as the case may be, shall keep and retain a certificate referred to in subsection (3B) or a copy certificate referred to in subsection (3C), as appropriate, and

(b) an administrator, subsequent administrator and fund administrator shall keep and retain a copy of a notification referred to in subsection (3D),

for a period of 6 years following—

(i) in the case of an administrator, the date of the benefit crystallisation event giving rise to the chargeable excess tax or, where a transfer amount has been applied and the administrator and the subsequent administrator are the same person, the later of that date and the date of crystallisation of the non-member’s retirement benefit under the transfer arrangement,

(ii) in the case of a subsequent administrator in any other circumstance, the later of the date of crystallisation of the non-member’s retirement benefit under the transfer arrangement and the date of receipt of the certificate, or

(iii) in the case of a fund administrator, where the administrator and the fund administrator are the same person, the date of the benefit crystallisation event giving rise to the chargeable excess tax, and in any other circumstance, the date of receipt of the certificate or copy certificate, as the case may be,

and on being so required by a notice given to the administrator in writing by an officer of the Revenue Commissioners make available to the officer within the time specified in the notice such certificates, copy certificates or notifications specified therein.”,

(d) in section 787RA—

(i) in subsection (1) by inserting “(including, where the provisions of section 787R(2A) apply, an individual who is a relevant member of a relevant pension arrangement)” after “in relation to an individual in respect of a relevant pension arrangement”,

(ii) in subsection (1) by inserting “or the relevant individual’s appropriate share of that tax, as the case may be,” after “the income tax on the chargeable excess”,

(iii) in subsection (3) by inserting “or the appropriate share of that tax, as the case may be,” after “the chargeable excess tax” wherever it occurs,

(iv) in subsection (8) by inserting “or the appropriate share of that tax, as the case may be” after “a chargeable excess tax”, and

(v) by inserting the following subsection after subsection (8):

“(9) Where the provisions of section 787R(2A) apply, this section shall, with any necessary modifications, apply to the non-member in respect of the non-member’s appropriate share of the chargeable excess tax.”,

and

(e) in section 787S—

(i) in subsection (1) —

(I) by substituting “within 3 months from” for “within 3 months of”, and

(II) by substituting the following for paragraph (e):

“(e) details of the tax which the administrator is required to account for in relation to the chargeable excess,

and where the administrator is the administrator of a relevant pension arrangement to which section 787R(2A) applies the return shall also contain—

(i) where no transfer amount has been applied—

(I) the name, address and PPS Number of the non-member, and

(II) instead of the details referred to in paragraph (e), details of the relevant member’s and non-member’s appropriate share of the tax which the administrator is required to account for in relation to the chargeable excess,

and

(ii) where a transfer amount has been applied—

(I) other than where the administrator, subsequent administrator and fund administrator are the same person, the name, address and telephone number of the subsequent administrator or fund administrator, as the case may be,

(II) the name, last known address and, where known, the PPS Number of the non-member, and

(III) instead of the details referred to in paragraph (e), the amount of, and the basis of calculation of—

(A) the relevant member’s appropriate share of the tax that the administrator is required to account for, and

(B) the non-member’s appropriate share of the tax that the subsequent administrator or fund administrator, as the case may be, is required to account for by way of a separate return under this section.”,

(ii) by inserting the following after subsection (1):

“(1A) Where the provisions of section 787R(2A) apply and a transfer amount has been applied, then—

(a) where the transfer arrangement is the relevant pension arrangement of the relevant member, the subsequent administrator, within 3 months from—

(i) the end of the month in which the benefit crystallisation event giving rise to the chargeable excess tax occurs where, at the date of that event, the non-member is in receipt of a pension payable from the transfer arrangement,

(ii) the end of the month in which a sum representing the non- member’s accrued rights under the transfer arrangement (in this paragraph referred to as the ‘first-mentioned arrangement’) is transferred (in whole or in part) to another relevant pension arrangement, or

(iii) the end of the month in which the non-member’s retirement benefit under the first-mentioned arrangement crystallises,

or

(b) where the transfer arrangement is not the relevant pension arrangement of the relevant member and the subsequent administrator has received a certificate referred to in section 787R(3B), the subsequent administrator, within 3 months from—

(i) the end of the month in which the subsequent administrator receives the certificate where, at the date of receipt of the certificate, the non-member is in receipt of a pension payable from the transfer arrangement,

(ii) the end of the month in which a sum representing the non- member’s accrued rights under the transfer arrangement (in this paragraph referred to as the ‘first-mentioned arrangement’) is transferred (in whole or in part) to another relevant pension arrangement, or

(iii) the end of the month in which the non-member’s retirement benefit under the first-mentioned arrangement crystallises,

or

(c) where—

(i) the fund administrator has received a certificate or copy certificate referred to in section 787R(3C), the fund administrator within 3 months from the end of the month in which the certificate or copy certificate is received, or

(ii) the fund administrator and the administrator of the pension arrangement in respect of which the benefit crystallisation event giving rise to the chargeable excess tax arises, are the same person, the fund administrator within 3 months from the end of the month in which the benefit crystallisation event occurs,

as the case may be, shall—

(i) make a return to the Collector-General which shall contain—

(I) the name, address and telephone number of the subsequent or fund administrator, as the case may be,

(II) the name, address and PPS Number of the non-member,

(III) the name, address and telephone number of the administrator of the relevant pension arrangement from which the transfer amount arose,

(IV) the amount of, and the basis of calculation of, the non-member’s appropriate share of the tax, and

(V) the amount of the non-member’s appropriate share of the tax which the subsequent or fund administrator, as the case may be, is required to account for,

and

(ii) where the amount of the non-member’s appropriate share of the tax which the subsequent or fund administrator is required to account for is less than the amount of that share, notify the non-member in writing at the time the return to the Collector-General is made of that fact and that the balance (being the difference between the amount of the appropriate share and the amount of that share to be accounted for by the subsequent or fund administrator) is due and payable by the non-member to the Collector-General in accordance with this section within 3 months from the date of the notification.

(1B) Where a notification referred to in subsection (1A)(ii) is sent to a non-member, a copy of the notice shall be sent by the fund administrator or the subsequent administrator, as the case may be, to the Revenue Commissioners at the same time.

(1C) Where a non-member receives a notification referred to in subsection (1A)(ii) or a notification referred to in section 787R(3D) (in the circumstance referred to in section 787R(3E)), he or she shall within 3 months from the date of the notification make a return to the Collector-General which shall contain—

(a) the name, address and telephone number of the subsequent or fund administrator, as the case may be,

(b) the name, address and PPS Number of the non-member,

(c) the amount of the non-member’s appropriate share of the tax,

(d) the amount of the non-member’s appropriate share of the tax accounted for by the subsequent or fund administrator, as the case may be, and

(e) the amount of the non-member’s appropriate share of the tax which the non-member is required to account for.”,

(iii) in subsection (3) by substituting “(including a relevant member’s or non- member’s appropriate share of that tax) which a person is required to account for, in whole or in part,” for “which a person is required to account for”, and

(iv) in subsection (5) by inserting “or, where the provisions of section 787R(2A) apply, whether of the subsequent administrator, fund administrator, relevant member or non-member, as the case may be” after “whether of the administrator of a relevant pension arrangement or the individual”.

(5) Chapter 4 of Part 30 of the Principal Act is amended—

(a) in section 790D(1) —

(i) by substituting the following for paragraph (g) of the definition of “excluded distribution”:

“(g) a distribution made for any of the purposes set out in section 784A(3A);”,

and

(ii) by substituting the following for B in the formula in the definition of “specified amount”:

“B is—

(a) where the relevant value is not greater than €2,000,000—

(i) 4, where the individual is not aged 70 years or over for the whole of the tax year, or

(ii) 5, where the individual is aged 70 years or over for the whole of the tax year,

or

(b) 6, where the relevant value is greater than €2,000,000,”,

and

(b) by inserting the following after section 790D:

“Taxation of certain investment returns to relevant pension arrangements

790E. (1) Notwithstanding any other provisions of this Part or Part 19, where the amount to be regarded as a distribution for the purposes of section 784A is determined in accordance with subsection (1B)(h) of that section, then the provisions of section 774(3), 784(4), 785(5), 787I(1), 608(2) or 608(3) shall not apply to any income or gains, to which those provisions would, but for this section, otherwise apply, that arise to the pension investor (within the meaning of subsection (1B)(h) of section 784A) where the circumstances described in subparagraphs (i) and (ii) of subsection (1B)(h) of section 784A arise.

(2) The income or gains referred to in subsection (1) shall be chargeable to tax on the trustees or administrator of the pension investor, referred to in that subsection, under Case IV of Schedule D.”.

(6) The following provisions of this section shall have effect on and from 1 January 2015:

(a) subsection (1) ;

(b) subsection (2)(a)(iv) and (b);

(c) subsection (3)(a);

(d) subsection (4) ; and

(e) subsection (5)(a).

(7) The following provisions of this section shall have effect on and from 23 October 2014:

(a) subsection (2)(a)(i) to (iii);

(b) subsection (3)(b); and

(c) subsection (5)(b).