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(d)by virtue of section 787 of the Act, to be deducted from or set off against the employee's relevant earnings (within the meaning of section 783 of the Act) for the year of assessment in which it is paid,

(b) in section 787 by substituting the following for subsections (15) and (16):

Section 787.

section 787 of the Taxes Consolidation Act, 1997

(a) any annuity made payable to an individual under the terms of an annuity contract or trust scheme for the time being approved by the Revenue Commissioners for the purposes of Chapter 2 of Part 30 to the extent to which such annuity is payable in return for any amount on which relief is given under section 787, and

(9) A deduction given under this section for any year of assessment shall not be taken into account in determining the net relevant earnings (within the meaning of section 787) (within the meaning of section section 787 or section 787B) of the relevant individual for that year of assessment.

(1) (a) Where an individual, being an individual referred to in paragraph (b), pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract by which the main benefit secured is, or would, but for the exercise of an option by the individual under subsection (2A), be a life annuity for the individual in his or her old age or under a contract for the time being approved under section 785 (in this Chapter referred to as a “qualifying premium”), relief from income tax may be given in respect of the qualifying premium under section 787.

then, where the relevant migrant member has provided a certificate of contributions, relief for that year of assessment under the provisions of section 774(6), 774(7) and 778(1) of Chapter 1 under the provisions of subsections (6), (7) and (8) of section 774 and section 778(1) of Chapter 1 (which relates to occupational pension schemes), or, as the case may be, section 787 of Chapter 2 (which relates to retirement annuities), or sections 787C, 787E, 787F or 787J of Chapter 2A (which relates to personal retirement savings accounts), shall, with any necessary modifications, apply to those contributions as if—

(a) where the individual has made a PFT notification (within the meaning of section 787P), the accrued pension amount shall be the annual amount of pension included in the statement from the administrator referred to in subsection (2)(a) of section 787P, and

(d) any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief from tax under section 787, or

(9) This section shall apply to life annuities whenever purchased or commencing, and the reference to section 787 in subsection (2)(d) shall be construed accordingly.

(5) Notwithstanding subsection (2), for the purposes of subsection (1) the earnings limit for the year of assessment 2010 shall be deemed to be €115,000 for the purpose of determining how much of a contribution or qualifying premium, as the case may be, paid by an employee or an individual in the year of assessment 2011, is to be treated by virtue of section 774(8), 776(3), 787(7) or 787C(3), as the case may be, as paid in the year of assessment 2010.

E is all the income, profits or gains from any office, employment or pension whether chargeable under Schedule D or E (including income from offices or employments the duties of which are performed in the State) of an individual in that year after deducting any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7) or 787 but excluding—

Eis all the income, profits or gains that arise in the year of assessment from a relevant office or employment, whether chargeable under Schedule D or E, and includes so much of any gain to which section 128 applies on which tax is payable in the State where such gain is realised by the exercise, assignment or release of a right obtained by the individual as an office holder or employee in the relevant office or employment, after deducting any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7), 787, 787E or 787N but excluding—

(I) any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7), 787, 787E or 787N, and

(b) For the purposes of paragraph (a), any such deduction or set-off shall not be taken into account in determining the net relevant earnings (within the meaning of section 787) of the individual or, as the case may be, the individual’s spouse spouse or civil partner for the relevant year of assessment.