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GAZETTE
' APRIL
1 9 90
Social Welfare announced that, in
future, refunds of the old age
(contributory) element of the PRSI
contribution would be made to
both employed and self-employed
contributors who enter insurance
after reaching 56 years and who do
not qualify for a non-contributory
old age pension. The necessary
regulations are currently being"
drafted and the question of the
payment of interest on the amounts
refunded is being considered in this
context.
Finally, you also refer in your
letter to the tax treatment of self-
employment contributions. In de-
termining the rate of self-employ-
ment contribution the Government
had regard to the views of the
National Pensions Board in the
matter. A majority of the members
of the Board recommended that, on
grounds on equity, the rate of
contribution should be the same as
the combined employer/employee
rate for old age and widow's and
orphan's pensions - that is a rate
of 6.6%, when allowance is made
for the tax relief on the employer's
contribution. The Board recog-
nised, however, that in setting the
rate of contribution the Govern-
ment would have to take into
account the ability of the self-
employed to pay the rate recom-
mended. In the event the
Government set the contribution
rate at 5% and this rate is being
phased in over a three-year period
from April 1988 to April 1990.
It should also be noted in this
regard that making contributions
tax deductible would be regressive
in that it would benefit only those
on higher incomes who pay tax and
would be of most benefit to those
on higher incomes who are liable
for tax at the higher rates. To
maintain existing net levels of PRSI
contribution income it would be
necessary to either increase or
abolish the present income ceiling
for PRSI purposes, which is cur-
rently £16,700, and/or increase the
percentage rates of contributions.
The first option could effectively
cancel out the net benefit to many
of those on higher incomes of
having contributions tax deductible.
The effect of the second option
would be to shift part of the burden
of financing social insurance bene-
fits from those on higher earnings,
who would be paying a reduced
amount of PRSI because their con-
tributions would be tax deductible,
to those on lower earnings, who
would not have any tax liability.
Yours sincerely,
Enda Flynn,
Planning Unit,
Department of Social Welfare,
Store St.,
Dublin 1.
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INSOLVENCY PRACTITIONERS
ASSOCIATION
A Meeting will be held on
Thursday 26th April 1990
at 6.00 p.m.
at Milltown Golf Club
The topic to be discussed
' '/nso/venc y De velopmen ts''
Speakers:
Ray Jackson, Rory
O'Ferrall, Frank Sowman,
John Glackin.
Anyone interested please contact:
John Glackin
Gerrard Scallan & O'Brien,
Hainault House,
69-71 St. Stephen's Green,
Dublin 2.
Tel: 780699.
FAMILY LAWYERS
ASSOC I A T I ON
FORTHCOMING SEMINARS:
25th April - Conveyancing and Family
Law
30th May - Legal Aid
12th July - Enforcement of Foreign
Judgments
VENUE/TIME:
7.00p.m., Buswell's Hotel, Molesworth
Street, Dublin.
ANNUAL MEMBERSHIP:
For the year 1989/90 is £15 and entitles
every member to free copies of the
Association's Journal and attendance at
seminars. The first edition of this year's
Journal contains a comprehensive guide to
the Judicial Separation and Family Law
Reform Act, 1989.
SUBSCRIPTIONS TO:
Barbara Seligman, Law Library,
P.O. Box 2424,
Dublin 7.
Cork Area: Rosemary Horgan,
The Law Centre,
24 North Mall, Cork.
76