“Refund of contribution - maintenance arrangmements.

72B. (1) In this article -

‘aggregate income’ in relation to an insured person means his or her reckonable earnings or reckonable income within the meaning of section 22 (1) (d) or the aggregate of both;

‘maintenance’ means a payment made under or pursuant to a maintenance arrangement within the meaning of section 1025 of the Taxes Consolidation Act, 1997 ( No. 39 of 1997 ) relating to marriage for the benefit of the other party to the marriage, unless section 1026 of that Act applies in respect of such a payment;

‘reckonable income’ in relation to a self-employed contributor or an optional contributor has the meaning assigned in section 2 (1).

(2) Subject to these Regulations where in any contribution year commencing on or after the 6th day of April, 2001, an employment contribution, self-employment contribution, optional contribution or voluntary contribution is paid by an insured person and that person has also paid maintenance in that contribution year, an amount, calculated in accordance with this article, of such contribution as was paid in respect of that portion of the insured person's income which was paid in maintenance, may be returned to him or her if application to that effect is made in writing to the Minister within such time as he or she may determine.

(3) Subject to sub-article (5), in the case of an employed contributor or a voluntary contributor the amount of contribution to be returned under sub-article (2) shall be determined as follows:

(a) where an insured person's aggregate income in that contribution year is less than or equal to the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

M × R, or

(b) where an insured person's aggregate income in that contribution year exceeds the amount specified in section 10 (1) (c) but when reduced by the amount of maintenance paid is less than the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

(C- (A-M) ) × R

where -

A  is the aggregate income,

C  is the amount specified in section 10 (1) (c),

M is the amount of maintenance paid, and

R  is

(i)   the highest rate of contribution paid by the insured person in that contribution year, or

(ii)  in the event of the amount of maintenance paid exceeding the amount of reckonable earnings, reckonable income or reckonable emoluments to which the highest rate of contribution applied in that contribution year, the next highest rate of contribution paid in descending order.

(4) Subject to sub-article (5) in the case of a self-employed contributor the amount of contribution to be returned under sub-article (2) shall be determined in accordance with the formula:

M × R

where

M is the amount of maintenance paid, and

R  is the rate of contribution paid by the insured person in that contribution year.

(5) In the case of an insured person who, in the contribution year in which the maintenance is paid, is both an employed contributor and a self-employed contributor, the amount of contribution to be returned shall be determined -

(a) in accordance with sub-article (3), and

(b) in accordance with the formula:

M × R

where -

M   is the amount of maintenance, if any, in respect of which a return is not due under sub-article (3), and

R    is the rate of self-employment contribution paid by that person in that contribution year.

(6) In the case of an optional contributor the amount of contribution to be returned under sub-article (2) shall be determined as follows:

(a) where an optional contributor's reckonable income in that contribution year is less than or equal to the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

M × R, or

(b) where an optional contributor's reckonable income in that contribution year exceeds the amount specified in section 10 (1) (c) but when reduced by the amount of maintenance paid is less than the amount specified in section 10 (1) (c), the amount of contribution to be returned shall be calculated in accordance with the formula:

(C- (A-M) ) × R

where -

A  is the reckonable income

C  is the amount specified in section 10 (1) (c),

M is the amount of maintenance paid,

R  is the rate of optional contribution paid by that person in that contribution year, and.

(7) (a)  Notwithstanding sub-articles (3), (5) (a) or (6) where an employed contributor's aggregate income or an optional contributor's reckonable income when reduced by the amount of maintenance paid is greater than the amount specified in section 10 (1) (c), no employment contribution voluntary contribution or optional contribution shall be returned.

(b)  Notwithstanding sub-articles (3), (4), (5) (b) or (6), where the return of a contribution would have the effect of reducing that person's voluntary, self-employment or optional contribution below the minimum amount of contribution applicable in his or her case, the amount of contribution to be returned shall be the difference between the minimum rate applicable and the amount calculated in accordance with the said sub-articles.”.

GIVEN under the Official Seal of the Minister for Social, Community and Family Affairs, this 5th day of June, 2002.

DERMOT AHERN

Minister for Social, Community and Family Affairs.