S.I. No. 218 of 2006

SOCIAL WELFARE (CONSOLIDATED CONTRIBUTIONS AND INSURABILITY) (AMENDMENT) (CHARGEABLE EXCESS) REGULATIONS 2006

The Minister for Social and Family Affairs, in exercise of the powers conferred on him by sections 2 (as amended by section 5, 29 and Schedule 6 of the Social Welfare Law Reform and Pensions Act 2006 (No. 5 of 2006)) and 4 (as amended by section 17 and Schedule 3 of the Social Welfare Law Reform and Pensions Act 2006 ) of the Social Welfare Consolidation Act 2005 (No. 26 of 2005) hereby makes the following regulations:

Citation and Construction.

1.  (1)  These Regulations may be cited as the Social Welfare (Consolidated Contributions and Insurability) (Amendment) (Chargeable Excess) Regulations 2006.

(2)  These Regulations and the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 to 2004 shall be construed together as one and may be cited as the Social Welfare (Consolidated Contributions and Insurability) Regulations 1996 to 2006.

Definitions.

2.  In these Regulations -�the Principal Regulations-� means the Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 ( S.I. No. 312 of 1996 ).

Exclusions from reckonable income.

3.  Chapter 2 of Part II of the Principal Regulations is amended by substituting article 27A (as inserted by the Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations 2004 ( S.I. No. 428 of 2004 )) for the following:

-�Exclusions from reckonable income.

27A.  (1)  For the purposes of the definition of -�reckonable income-� in section 2(1), the following items shall not be included in reckonable income:

(a)  any payment in respect of a foreign life policy referred to in section 730J of the Act of 1997,

(b)  the amount of any gain arising on a disposal of a foreign life policy referred to in section 730K of the Act of 1997,

(c)any payment received in respect of a material interest in an offshore fund referred to in section 747D of the Act of 1997,

(d)  the amount of any gain arising in respect of a disposal of a material interest in an offshore fund referred to in section 747E of the Act of 1997, and

(e)  any chargeable excess referred to in section 787Q of the Act of 1997.

(2)  Paragraphs (a) to (d) of sub-article (1) apply in relation to any contribution year commencing on or after 1 January 2004.

(3)  Paragraph (e) comes into operation from and including 7 December 2005.-�.

The Minister for Finance hereby consents to the making of the foregoing Regulations.

Explanatory Note

[This note is not a part of the Instrument and does not purport to be a legal interpretation.]

These Regulations amend the Social Welfare (Consolidated Contributions and Insurability) Regulations to provide for exemption from PRSI of a chargeable excess as defined in section 787Q of the Taxes Consolidation Act 1997 .