I am in an unusual situation as follows:-
3 years ago I availed of a severance package from my employer which involved a severance payment to me at the time. No pension payable at that time.
I had a deferred pension from this employer which became payable earlier this year when i turned 60.
I have recently been advised by the employer that due to a misinterpretation of the pension fund rules my pension should have started at the time of my leaving 3 years ago. Therefore there is two and a half years pension due to me which they are going to pay by way of a lump sum shortly. This will be c.€150k. It will of course be subject to paye and USC. The tax will all be at the marginal rate as most of my standard rate band has been used up with the commencement of the deferred pension earlier this year and some other income.
If I had received the pension income as I should have done over 2013 and 2014 and the earlier part of 2015 I would have been paying tax at the standard rate as I had little other income. Now I am at a disadvantage as it will all be taxed at my marginal rate.
In view of the above I wonder is is possible to reopen my tax returns for 2013 and 2014 and include the portion of the back payment which accrued for those periods and thus avail of a lower tax rate on a large portion.
Any advice on this or any other pertinent issues on this situation would be appreciated.
Thanks
3 years ago I availed of a severance package from my employer which involved a severance payment to me at the time. No pension payable at that time.
I had a deferred pension from this employer which became payable earlier this year when i turned 60.
I have recently been advised by the employer that due to a misinterpretation of the pension fund rules my pension should have started at the time of my leaving 3 years ago. Therefore there is two and a half years pension due to me which they are going to pay by way of a lump sum shortly. This will be c.€150k. It will of course be subject to paye and USC. The tax will all be at the marginal rate as most of my standard rate band has been used up with the commencement of the deferred pension earlier this year and some other income.
If I had received the pension income as I should have done over 2013 and 2014 and the earlier part of 2015 I would have been paying tax at the standard rate as I had little other income. Now I am at a disadvantage as it will all be taxed at my marginal rate.
In view of the above I wonder is is possible to reopen my tax returns for 2013 and 2014 and include the portion of the back payment which accrued for those periods and thus avail of a lower tax rate on a large portion.
Any advice on this or any other pertinent issues on this situation would be appreciated.
Thanks