Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

A group representing the charities came to me with this proposal which I thought was an interesting one. The Deputy might recall that when I presented the 2011 budget, we indicated that we were considering this as an option and we gave other charities one year to make submissions. The effect is, in some ways, logistical. Up until now one received relief at the marginal rate, but the relief was given to the donor. Now we are blending the rate at 31%. If one contributes to a charity and one's tax rate is 20%, it will be brought up to 31%. The Exchequer position is balanced, in that if one is a marginal relief taxpayer, the rate of relief is 41% which will be brought down to 31% and all of it will go to the charity. Previously it received a piece of it; the donor also got a piece by way of self-assessment in claiming it back under the heading of taxable donations.