Martin Cullen (Waterford, Fianna Fail)

As I stated in my written reply of 21 January 2010, the original intention of the legislation referred to by the Deputy was, inter alia, to create an environment in which the arts could flourish and also to encourage Irish artists on modest incomes to remain here rather than going abroad to earn a living. Under subsection (12) of section 195 of the Taxes Consolidation Act 1997, there is provision for guidelines to be drawn up by the Arts Council and the Minister for Arts, Sport and Tourism, with the consent of the Minister for Finance, which determine if the work is an original and creative work and whether it has, or is generally recognised as having, cultural or artistic merit. Officials in my Department, the Arts Council and the Revenue Commissioners are currently engaged in finalising new draft guidelines for consideration.

Section 195 of the Taxes Consolidation Act 1997 empowers the Revenue Commissioners to make a determination that certain artistic works are original and creative and have either cultural or artistic merit. This section provides an exemption from tax for the profits or gains arising to a person from the publication, production or sale of an original and creative work which has artistic or cultural merit in any of the five following categories set out in the legislation: a book or other writing; a play; a musical composition; a painting or other like picture; and a sculpture. The Revenue Commissioners may consult with a person or body of persons which may be of assistance to them in reaching decisions on the granting of such an exemption. The Arts Council is an example of such a body.

While the drawing up of guidelines is the responsibility of my Department and the Arts Council, the Revenue Commissioners are the users of the guidelines.

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