Alan Kelly (Labour)

I move recommendation No. 20:

In page 108, before section 83, to insert the following new section:

83.—The Minister may make regulations providing relief in respect of VAT for registered charities provided that such charities comply with such requirements including requirements as to accountability and financial transparency as may be prescribed.".

This proposes the Minister makes regulations providing for relief in respect of VAT for registered charities, provided they comply with such regulations including requirements as to accountability and financial transparency, as may be prescribed. The Minister has hit on this earlier today. I am looking at how charities may be exempted from VAT. A number of specific reliefs relate to charitable activities. I have seen them outlined in leaflets that are available from the Revenue Commissioners.

Would it not be a good recommendation, that once such organisations had satisfied the requirements as regards accountability and financial transparency, they be exempt from VAT? From a practicable viewpoint, the Minister will probably say "No", but what is the Government's current thinking in this regard, so that charities, in most cases, may avoid VAT on the work they do?