Pension loophole exploited by employers who transferred millions tax free into funds for family members

In 2023, Revenue's analysis revealed that 125 companies moved over €100,000 into pension funds to exploit tax relief, with rising cases observed.

The review highlighted that 80% of the beneficiaries were personally connected to the employer, such as owners, spouses, or children.

The Revenue found that contributions, in some cases exceeding €1.3m annually, would have surpassed maximum funding limits of occupational pension schemes.

Despite representing only 0.3% of employer PRSA contributions, the 125 cases comprised 20% of the overall total, derived mostly from connected business owners.

Read at Irish Independent