Pension loophole exploited by employers who transferred millions tax free into funds for family members
Revenue review revealed how 125 companies had moved at least €100,000 into someone’s pension fund to benefit from a generous tax relief
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 that 17 of these cases involved payments of at least half a million euro and that the numbers involved appeared to be rising.
It said that in nearly 80pc of the cases, the employee that benefitted was personally connected to the employer “i.e. owner or spouse, child, [or] parent.”
The Revenue review also found that for 13 of the transfers, the person who benefitted had only taken up employment that year. The review found some cases where the contribution to the pension fund exceeded €1.3m in a 12-month period.
It said: “The level of salary and service suggests that these contributions would have exceeded Revenue maximum funding limits had they…
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