New section in Form 11 - Lump Sum

[Eithneangela]

The Form 11 for 2011 has a new section to be filled in relating to lump sums (tax-free or otherwise) for 2 periods - between 2005 and 2010, and for 2011.

If a lump sum is tax free, why should Revenue want details of it now? Why not before? Is this more of the nanny state? I would have thought that Pension companies supply this information to Revenue in any event.

 

[mandelbrot]

The Form 11 for 2011 has a new section to be filled in relating to lump sums (tax-free or otherwise) for 2 periods - between 2005 and 2010, and for 2011.

If a lump sum is tax free, why should Revenue want details of it now? Why not before? Is this more of the nanny state? I would have thought that Pension companies supply this information to Revenue in any event.

AFAIK the pension companies wouldn't be reporting to Revenue payment of tax free lumps to people.

So, in the absence of receiving the information that way, it's being requested through the self assessment system.

I'll put it to you this way, would you rather:

1. have a Revenue audit because (based on the limited info available) Revenue couldn't figure out where you got the money for a large deposit into your bank, or a 2nd home, or other lifestyle expenditure that you could be seen to have made after receiving the lump sum,

or

2. Tell them about the lump sum on your tax return so that they could cross you off the list of possible audits, and concentrate their resources on people who have got something to hide.

Call it nanny state if you wish, but to me it makes sense.

 

[Eithneangela]

Thanks, Mandelbrot. That didn't occur to me - and I suppose the fact that I invested in some of the an Post savings schemes is information that Revenue can get quite easily.

 

[Eithneangela]

I got 2 small tax free lump sums in the past 2 years - 1 from an ARP and 1 from an occupational pension. Is there any problem with receiving 2 such sums?