Oireachtas Joint and Select Committees

Tuesday, 15 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage (Resumed)

2:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 122:

In page 67, after line 35, to insert the following:

“Value-Added Tax in respect of Charities

45. The Minister shall, within 3 months of the passing of this Act, prepare and lay before Dáil Éireann a report on the introduction in 2017 of a capped Value-Added Tax compensation scheme for charities with reimbursement to commence in 2018.”.

This is an issue that has come up nearly every year on the Finance Bill. A report was prepared by the Department of Finance working group which involved Department officials, members of the Irish Charities Tax Reform Group and a representative of Ernst & Young, EY, which was completed last year. The report examined the options around introducing a VAT compensation scheme. The Minister will be familiar with the background to that. In the region of €77 million in VAT is paid by the charitable sector every year. The working group examined a number of different models on the possible introduction of a compensation scheme in Ireland, including one in the United Kingdom, a Dutch model and the Danish scheme, which seems to be a popular one. I am aware money has not been provided for such a scheme to be introduced by way of VAT compensation in 2017 but the Minister might confirm the policy position of the Government following the completion of that report. Is the Government minded to introduce such a compensation scheme for charities that are absorbing much of the money from fundraising by volunteers to pay for VAT on goods and services and on capital projects also?

Comments

No comments

Log in or join to post a public comment.