Written answers
Tuesday, 8 March 2005
Department of Finance
Tax Code
8:00 pm
Pat Rabbitte (Dublin South West, Labour)
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Question 228: To ask the Minister for Finance if a trust fund established collectively by the Roman Catholic bishops called the Stewardship Trust has applied to the Revenue Commissioners for charitable status for the purposes of the Taxes Acts; if such status has been granted; if it has not been granted, the tax treatment of that trust; if making contributions towards the payment of awards of damages and the costs associated with such awards could ever be regarded as a charitable purpose; and if he will make a statement on the matter. [7818/05]
Brian Cowen (Laois-Offaly, Fianna Fail)
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Any body may apply for charitable tax exemption under tax law and this may be granted by the Revenue Commissioners where the applicant fulfils the criteria in either one or more of the following activities: the relief of poverty; the advancement of religion; the advancement of education; and certain other works of a charitable nature beneficial to the community.
In addition, the body must be legally established in the State and have its centre of management and control therein; it must ensure that its objects and powers are so framed that every object to which its income or property can be applied is charitable; and it must be bound, as to its main objects and the application of its income or property, by a governing instrument, for example memorandum and articles of association in the case of an incorporated body, deed of trust, constitution or rules in the case of an unincorporated body.
Whether a particular activity qualifies as a charitable purpose depends on the circumstances of the case and the application of the rules. I am advised by the Revenue Commissioners that the trust in question applied for and was granted charitable tax exemption in 1997. Some 6,450 bodies have been granted charitable tax exemption by the Revenue Commissioners.
As the Deputy will be aware, taxpayer confidentiality requires that a Minister for Finance does not answer a parliamentary question about the tax affairs of an individual or body, other than when the question is being asked on behalf of the taxpayer. In this instance, it is not clear that the Deputy is asking the question on behalf of the trust. In these circumstances, I cannot comment on the individual tax affairs of the trust concerned.
The Deputy may wish to note that bodies that are granted charitable status are subject to periodic review with a view to ensuring their continued compliance with the terms of the exemption. This includes ensuring that income of the charity is applied for charitable purposes.
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