(1) The Taxes Consolidation Act, 1997, is amended -

(a) by the substitution of the following for subsection (5) of section 118:

"(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director's or employee's spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on the death or retirement of the director or employee, other than an expense incurred by way of contribution by the body corporate to a PRSA (within the meaning of Chapter 2A of Part 30).",

(b) in Part 26 -

(i) by the insertion in section 706(3) of the following paragraph after paragraph (c):

"(d) any contract with a PRSA provider (within the meaning of Chapter 2A of Part 30) being a contract which was entered into for the purposes only of the PRSA concerned;",

and

(ii) in paragraph (b) of subsection (2) (inserted by the Finance Act, 2001) of section 730D -

(I) by the deletion in subparagraph (ii) of "or",