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

I thank the Deputy. I will read a short note and will then add clarity on the specific question.

This section makes two amendments to section 235 of the Taxes Consolidation Act 1997, which provides for an exemption from income tax and corporation tax on the income of certain bodies established for the purpose of the promotion of athletic or amateur games or sports. The first amendment inserts definitions of "competitive sport", "recreational sport" and "sport". The definitions are taken directly from the Sport Ireland Act 2015, and including them in this section is intended to provide clarity as to what bodies are eligible to apply for tax exemption. The amendment also inserts a grandfathering clause which allows bodies already granted the tax exemption under this section to retain it subject to the conditions under which it was granted. The second amendment provides for the publication of a list of bodies that have been granted a tax exemption under section 235. This amendment ensures that there is a legislative basis for Revenue to do this. It allows the bodies already granted the tax exemption to retain it.

The insertion of a definition of "sport" into section 235 provides clarification about who may be eligible for this tax exemption. The definitions of "competitive sport" and "recreational sport" specify that to fall into the definition of "sport", the activities of the bodies must either provide for organised participation in a physical activity which improves fitness and promotes competition or provide for casual or regular participation in a physical activity which provides fitness, mental well-being and forms social relationships.

I am informed that we do not have any specific body in mind but the definition of "sport" may not cover bodies like motor clubs or flying clubs, which might not qualify as sports.