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Ireland To Tax Pensions

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Ireland to Impose Levy on Pension Funds to Finance Jobs Plan

May 10 (Bloomberg) -- Ireland’s government will impose a temporary levy on domestic private pension savings to fund a jobs plan aimed at cutting unemployment and aiding the economic recovery.

The government plans to apply an annual 0.6 percent charge over four years on pension assets, excluding funds providing benefits to non-resident employers and members, Finance Minister Michael Noonan said in Dublin today. The move should generate 470 million euros ($675 million) a year, he said.

The sales-tax rate on tourism-related products and services will be cut to 9 percent from 13.5 percent, while a travel tax may also be suspended, subject to conditions, he said. The government will also introduce a partial loan guarantee program for small and medium-sized businesses.

“There is no escaping the fact that we do not have the resources available at present to fund large-scale policy initiatives to help to generate economic activity,” said Noonan. Still, “I believe that today’s jobs initiative will help rebuild confidence amongst households and firms at home and among potential investors abroad.”

With unemployment close to a 17-year high, Ireland’s new government is seeking to create jobs within spending restrictions set down in the country’s bailout from the European Union and International Monetary Fund. Prime Minister Enda Kenny has pledged that the measures will have a neutral impact on the budget set out in December.

Ireland cut its 2011 economic growth forecast to 0.75 percent from 1.75 percent on April 29, citing weaker-than- expected domestic demand. The country’s unemployment rate was 14.6 percent in April.

This is working just great for the Irish folks, isn't it? :blink:

Edited by Greener Pastures

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Ireland to Impose Levy on Pension Funds to Finance Jobs Plan

This is working just great for the Irish folks, isn't it? :blink:

Private pensions, the ultimate mugs game in countries edging towards the edge

Tax benefits to put them in and relying on someones promise today that youll be honoured by someone else in the future

Ultimately the state has the ability to Nationalise the lot in the situ of imminent default. They are potentially a massive gamble on black

Edited by georgia o'keeffe

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Private pensions, the ultimate mugs game in countries edging towards the edge

Edging towards the edge? More like freefalling into the abyss :ph34r:

The emerald island sold its soul to the devil by joining the Euro, now officially run by and for German bankers, and this is the result.

Just as well the ECB understands their plight and is promptly reacting... oh wait

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Edging towards the edge? More like freefalling into the abyss :ph34r:

The emerald island sold its soul to the devil by joining the Euro, now officially run by and for German bankers, and this is the result.

Just as well the ECB understands their plight and is promptly reacting... oh wait

To be honest its been a while since the crisis started so its taken four years to make the first attack on private pensions, (lets exclude monetary attacks such as inflation) so thats a fair while, i wonder how long before the next slightly larger bite

If things really do go pear shaped for a few countries in the west (default etc) by the end of it some of the populace will probably have a real understanding as to why injin has his rather extreme views).

Still as long as Lenihan and Ahern are getting their 200K a year then things are ok

Edited by georgia o'keeffe

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I thought this was the new lot, that chucked out the old lot and were going to get tough with the Hun and tell them to shove their bad debts?

:lol:

Come on Irish people, rise up and tell the Germans to shove it. If you don't you'll be reduced to working for German banksters for the rest of your days. That's no life.

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Jobinitiative.pdf

But it's in something called the Job initiative......

day will be funded by way of a temporary levy on funded pension schemes and personal pension plans. I propose that the levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in the State.

It will apply for a period of 4 years commencing this year and is intended to raise about €470 million in each of those years. The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members. Further details regarding the proposed application of the levy are set out in the Summary of Initiative Measures.

I am conscious of the concerns of the pensions industry about the impact of a levy in circumstances where the pensions sector, in common with other sectors in our economy and society, is finding the current economic and financial environment very challenging. However, the imposition of the levy is for a relatively short period and its purpose is to improve that environment by providing the means to encourage job creation in areas of our economy most likely to deliver that employment quickly.

The levy is being confined to pension funds because I believe that the alternatives for increases in taxation elsewhere at this time would be more damaging to the economy. I will be glad to consult with the pensions industry on the legislative provisions which will give effect to the levy so as to seek to minimise, where possible, any unnecessary difficulties which this measure may give rise to.

The pension levy represents a very significant contribution by the pensions industry and the many individual savers it represents to our commitment to getting the economy moving again. I am aware that the pensions sector is also concerned, given the temporary levy, about the commitment in our agreement with the EU/IMF to reduce the tax relief on pension contributions starting next year. I will examine this issue in the context of the results of the Comprehensive Review of Expenditure currently being undertaken by the Minister for Public Expenditure and Reform, and any resulting scope for fiscally neutral changes to the EU/IMF agreement.

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I thought this was the new lot, that chucked out the old lot and were going to get tough with the Hun and tell them to shove their bad debts?

:lol:

Come on Irish people, rise up and tell the Germans to shove it. If you don't you'll be reduced to working for German banksters for the rest of your days. That's no life.

The new lot don't look too belligerent at the moment.

Irish bailout cut not top priority next week - Fin Min

DUBLIN, May 10 (Reuters) - European finance ministers are preoccupied with Greece and Portugal meaning an interest rate cut on Ireland's bailout loans will not be a top priority at their meeting next week, Ireland's Finance Minister said on Tuesday.

"It's not a priority issue next week," Michael Noonan told a news conference, adding he had made "some progress" with French and German colleagues on the interest rate but that it was not imperative to secure a reduction at the May 16-17 meeting of euro zone finance ministers.

"There is no particular pressure on us," Noonan said.

Makes you wonder who he means by "us" <_<

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Didnt Gordon Brown do something similar in 1998?

whilst gordos was far more damaging, this new tax is miniscule but it does set a precedent.

Gordo was taxing dividends, you actually had to to make something to get taxed, this doesnt matter whether your pot goes up down or sideways

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Haven't they had two already?

1. Compulsory 'investment' in infrastructure projects to create employment.

2. Ponied up state assets for the bank bailout.

Just working from memory so they could be entirely fictitious to be fair.

EDIT: I didn't dream it - lot of arm twisting I believe....

http://www.timesofma...ure-bond.255921

EDIT2: Double top!

http://edition.cnn.com/2011/BUSINESS/04/01/ireland.banks.noonan/index.html

The luck of the Irish

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NOTHING IS SAFE

As TDL has pointed out multiple times, the legislative step taken a year or so back to allow people (in the know) to transfer their pensions outside the jurisdiction of the UK make it almost seem a nailed on certainty that the politicos have at least considered sequestration of private pension pools as part of their scenario planning and there is too high a chance that they will actually take such steps.

It happened in Argentina in their financial crisis. They simply took the money and left them an iou stating they will pay them a pension when the time comes.

Wouldn't a more logical move have been to prevent people transfering? Not sure I follow or buy that. Sorry don't know what you mean by TDL

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So was it ever possible to wrap a private property investment into a pension asset within Ireland? that'll be a kick in the teeth, tax on funny money debt while in negative equity, or do they give it a triple A rating ignoring current market value.

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Hot air mail - thanks for the explanation

This development makes me feel that the prudent course is to plan for a wide spread of assets across classes and across nations, to sustain the years after work?

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This is probably a silly question but, is there any way to "off-shore" ring-fenced pension assets?

Answered my own question.. yes you can, but you may have to move there.

From This is money: Linky

- Extract -

One important decision you need to make is which country you wish to retire in. If you decide that it is the country in which you are now resident, then a transfer to that territory would make sense.

It may be possible to do this, dependent on the country in question, and provided the transfer is to a recognised pension scheme. There should be no problem in making a transfer to another EU country. Other countries may not be so straightforward.

The best thing to do is to write to your pension scheme, name the country you wish to transfer to and give details of the scheme you want to receive the transfer. Your scheme should then advise you of any further information required and will liase with the UK tax authorities for any permission required.

This process is likely to take some time so you need to be patient. You also need to get a quote and apply commercial judgement as to whether it represents a good deal.

Edited by libspero

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This development makes me feel that the prudent course is to plan for a wide spread of assets across classes and across nations, to sustain the years after work?

Just work until you croak, there's a good boy :ph34r:

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It's only a problem if you live to retirement age.

:lol:

edit - black humour at its best

Edited by p.p.

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Surprised people aren't more angry.

I don't understand it either. A friend of mine from the Republic was giving me a run-down of how much money he was down from the boom times. He could have went on all night and it was clear he was down at least 5-7 grand on an income in the 40 grand range. I know things are bad in the States, but my word, we would have open revolt if we had been subjected to what the Irish have been these last few years.

Are Irish people masochists, do they still hold a famine complex where they all secretly hope to be desperate and impovrished?

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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