Pensions Incentive Tax Credits (PITCs) Update Number 7 Wednesday 8 November 2006 The Pensions Incentive Tax Credits scheme (PITCs) is operating successfully since June 2006. In this PITC Update (Number 7) Revenue is providing advice to Pension Administrators in relation to the following: 1. Extension of 3-month time limit for pension subscription. 2. Summary of administrative arrangements for PITC scheme. 3. Information for SSIA holders Extension of 3-month time limit for pension subscription Revenue wish to advise Pensions Administrators and SSIA holders that it is further extending the cut off point for reinvesting SSIA funds in an approved pension. Accordingly for SSIA maturities in May, June, July and August 2006, the cut off point for the PITC scheme is extended to 31 December 2006. For maturities from September onwards, the three-month time frame set out in the legislation will apply. The details are as follows: May maturities limit now extended to 31 December 2006. June maturities limit now extended to 31 December 2006. July maturities limit extended to 31 December 2006. August maturities limit extended to 31 December 2006. September maturities 3-month time limit applies and cut off point is 31 December 2006. October – April maturities – 3-month time limit will apply to these. Administration of PITC scheme – summary • PITCs Guidance notes Guidance notes are available from Revenue to assist administrators in complying with their statutory obligations in relation to the management of the Pensions Incentive Tax Credits (PITCs) scheme. • Registration of administrators Administrators seeking to participate in the PITCs scheme must first register with Revenue. A Form PITC1 is available for this purpose and can be obtained from contact details below. • Accepting investments Administrators, provided they have registered with Revenue can accept investments to approved pensions products. • Declaration by SSIA holders Each SSIA holder reinvesting SSIA funds in approved pension product must complete a special declaration, which is supplied by the pension administrator. Administrators should note that they should retain declarations on file. They should not be submitted to Revenue with claims. • SSIA Maturity statement Each administrator when accepting an investment from an SSIA holder must ensure that an SSIA maturity statement is also provided. The SSIA holder can obtain this statement on request from the financial institution managing the SSIA. Administrators should note that they should retain maturity statements on file. They should not be submitted to Revenue with claims • Calculating tax credits Once administrators are satisfied that a declaration has been made they will use the investment and the maturity statement, provided by the SSIA holder, to calculate both the top up credit and the additional tax credit. These are then inserted on monthly claim. • Tax credits claim Administrators will submit a monthly tax credits claim to Revenue in respect of SSIA funds reinvested with them by SSIA holders in approved pension products. • Transferring tax credits Each administrator on receipt of tax credits from Revenue will transfer them immediately into the pension products. Information for SSIA holders Revenue has provided information to SSIA holders who are seeking to re-invest SSIA funds in an approved pension. • A Revenue information leaflet on tax relief investment in a pension was published in June 2006. Copies can be obtained by contacting Revenue at telephone numbers below. • Revenue has provided general information on the PITC scheme on the Revenue web site www.revenue.ie. Go to the home page and on the top right navigational bar click on “SSIA and Pensions learn more”. For assistance with any aspect of this update please contact any of the following: Michael Kearney 061-488203 Wilma Ryan 061-488376 Henry Kenny 061-488570 Joanne Gould 061-488154 E-mail enquiries to ssiaadmin@revenue.ie