Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I add my party's support to Deputy McGrath's amendment. It addresses the anomaly which exists, whereby charities are not afforded the same treatment as the many businesses that are able to reclaim VAT incurred. As Deputy McGrath said, this issue has been raised by charities for many years. I remember raising the issue when I was a Member of the Seanad approximately seven years ago. There is an injustice at its heart as has been pointed out. People dig deep into their pockets to provide for charities but, probably unbeknownst to them, out of every €5 they give approximately €1 goes to the State's coffers, and this is not the intention. This is not why people collect and raise money for charities. It is not the spirit of how it should operate.

The Danish model of VAT compensation has been noted. This has been in operation since 2007, and it is a model that would be fit for purpose for this country. It is reviewed on an ongoing basis by the Danish charity organisations and its department of finance and taxation. It needs to be brought to fruition in this country. I support the Deputy's amendment. It makes sense. It is capped, as he mentioned. We have spoken about the knowledge development box and €50 million, of which very high worth companies may avail. That section of the Finance Bill has been passed. These are charities and, in many respects, sometimes they fill a void which the State cannot or will not fill. The fact the State benefits not only from their charity work but from their fundraising efforts is not acceptable.

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