Dave Vanian
Registered User
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Yes it is and yes you can. Your personal contribution to both combined should stay below your age-related limits for tax relief, e.g. 25% of salary while in your 40s etc.
Is it possible for me to have the two schemes in place (occupational pension scheme and PRSA) and can I make a contribution to both?
A Revenue review of a glaring pension loophole found some businesses were transferring over €500,000 per year into funds for the owner, their spouse, their children, or parents.
An analysis of suspected misuse of the PRSA scheme found that in 2023, 125 companies had moved at least €100,000 into someone's pension fund to benefit from generous tax relief.
The review found some cases where the contribution to the pension fund exceeded €1.3m in a 12-month period.
Yeah, seems a bit odd but, then again, I guess that Revenue anti-avoidance measures can be quite wide ranging so maybe at least some of the exploitation of this "loophole" may fall foul of same...?https://rte.ie/news/business/2025/0106/1489319-revenue-reviews-glaring-pension-loophole
Not quite sure how it is considered 'suspected misuse', the outcome of the wording in the Bill was glaringly obvious and called out on this forum long before it became law.
I can well believe it. Revenue are also very reticent about ever admitting they made a mistake.I do know from somebody who was on the inside at the time that the "loophole" came about due to a lack of coordination between two government departments or, at least, certain individuals involved and a certain amount of turf protection.
That being the case then that is probably the kicker when it comes to their investigations into potential abuse of the "loophole"?The Revenue warned everyone from the beginning that it had to be bone fides employment.
If it was in relation to a bona fide employment then presumably that is probably completely above board?I heard that the scion of a major Irish business availed of an eight-figure top-up last year.
Why would he or she accept a €10m+ contribution when it’s going to be subject to Chargeable Excess Tax?I heard that the scion of a major Irish business availed of an eight-figure top-up last year.
It is.If it was in relation to a bona fide employment
That struck me as well. Perhaps there is an estate planning angle. Or perhaps it was just pub talk.Why would he or she accept a €10m+ contribution when it’s going to be subject to Chargeable Excess Tax?
Revenue knew all about it and consulted with the life companies before it was announced in the Budget...and after, hence the warnings about bone fides occupations.I heard that the scion of a major Irish business availed of an eight-figure top-up last year.
I can well believe it. Revenue are also very reticent about ever admitting they made a mistake.
This? Doing it for an employment that wasn't bona fide which was, perhaps, artificially created solely or mainly to avail of this "loophole" - something which might well fall foul of anti-avoidance regulations?Media headlines seem to imply that something underhand was happening.
If the law allowed unlimited contributions, and business owners availed of that with legally obtained funds, then whats the problem ?
The Revenue warned everyone from the beginning that it had to be bone fides employment.
Revenue knew all about it and consulted with the life companies before it was announced in the Budget...and after, hence the warnings about bone fides occupations.
Did anybody say that it was?Ok, if the employments were not bona fide, well thats a problem. But for bona fide employments generally, its not.
I heard that the scion of a major Irish business availed of an eight-figure top-up last year.
I can well believe it. Revenue are also very reticent about ever admitting they made a mistake.
That would be nine figures100,000,000
That's 9 figures.Eight-figure top-up?
Does that mean 100,000,000 pension contribution from an employer in respect of a CEO?
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