Michael Noonan (Limerick City, Fine Gael)
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I move amendment No. 7:

In page 12, after line 36, to insert the following:“Exemption in respect of compensation for certain living donors
6. The Principal Act is amended by inserting the following section after section 204A:

“Exemption in respect of compensation for certain living donors
204B. The compensation for donation of a kidney for transplantation payable to a living donor under conditions defined by the Minister for Health pursuant to Regulation 21(2) of the European Union (Quality and Safety of Human Organs Intended for Transplantation) Regulations 2012 (S.I. No. 325 of 2012) shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”.”.

The amendment provides for the insertion of a new section, section 204B, into the Taxes Consolidation Act 1997 to provide for an exemption from income tax in respect of compensation for living kidney donors. Such donors will generally incur expenses associated with travel and accommodation as well as suffering loss of income during the process of providing a donation. The donation of a kidney is governed by EU directive 2010/53/EU of 7 July 2010 on standards of quality and safety of human organ transplantations. The directive sets out a common framework on quality and safety standards for organs of human origin intended for transplantation into the human body. It also aims to protect donors and optimise exchanges between member states and third countries.
The directive was given effect in Irish law by way of European Union (Quality and Safety of Human Organs Intended for Transplantation) Regulations 2012, SI 325 of 2012. Article 21 of the regulation stipulates that living donors may receive compensation for a donation provided it is strictly limited to making good the expenses and loss of income related to the donation. It goes on to say that the Minister for Health shall define the conditions under which such a compensation may be granted "while avoiding there being any financial incentive or benefits for a potential donor". This new section provides for an exemption from income tax in respect of the reimbursement of expenses incurred by living donors under the conditions defined by the Minister for Health under these regulations. Such reimbursements may apply to vouched expenses of travel and accommodation up to a maximum of €6,000, and loss of income related to a donation up to a maximum of €6,000. The Minister for Health will shortly publish a document, entitled Policy on Reimbursement of Expenses of Living Kidney Donors, which will define the conditions under which the expenses of travel, accommodation and loss of income related to donations may be reimbursed.