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Minister for Finance Brian Cowen |
The figures, released in answer to a Parliamentary Question from Labour Finance spokeswoman Joan Burton, show that 186 of them paid no tax at all, including four who earned in excess of 1 million each.
Of the 873 who paid tax, but at a rate of 5 per cent or less, 32 people earned more than 1 million each. The figures also show that a total of 14 people who earned between 500,000 and 1 million paid no tax.
In answer to a Parliamentary Question from Green Party finance spokesman Dan Boyle, Minister for Finance said that more than 100 of the highest earners in the State have built up pension funds in excess of 5 million each.
In last year's budget, the Minister placed a 5 million cap on pension funds allowable for tax relief.
The information on the 116 individuals' pension became available after they were obliged under Cowen's measure to notify the Revenue Commissioners of their pension savings and apply for an exemption from the new tax provisions.
The Minister imposed an immediate freeze last December on tax relief for contributions to pension funds that were already in excess of the 5 million threshold.
However, individuals who were already above the threshold were given six months to confirm their position with the Revenue and retain tax relief for which they had previously qualified.
The average value of the tax-free pension funds for 76 people already granted exemption certification by the Revenue is 7.98 million. In addition to these 76 cases, a further 40 individuals have also applied for the exemption and their claims are currently being processed.
The Department of Finance said the funds had already been built up before the cap was announced in the 2005 budget. A spokesman said that it could not apply the 5 million cap to those with large funds already built up as it would have been retrospective application of legislation, and could have been legally challenged.