Joan Burton (Dublin West, Labour)
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Question 380: To ask the Minister for Finance if he will make a statement in respect of reports of parents of children at a primary school (details supplied) in Dublin 4 having been asked for voluntary contributions of €1000 per term; and if such contributions qualify for tax relief as charitable donations. [10964/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Without commenting on the individual tax affairs of the school concerned, the general position is that the scheme of tax relief for donations to approved bodies is governed by section 848A of the Taxes Consolidation Act 1997. Approved bodies include primary schools where their programmes are approved by the Minister for Education and Science. A voluntary contribution to an approved body qualifies for tax relief under the scheme provided it meets the conditions set out in section 848A. One such condition is that neither the donor nor any person connected with the donor receives a benefit, either directly or indirectly, as a consequence of making the donation. Accordingly, a voluntary contribution in exchange for education being provided to the donor's child would not be regarded as genuinely voluntary and would not qualify for tax relief.

Joan Burton (Dublin West, Labour)
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Question 381: To ask the Minister for Finance the cost to the Exchequer for each year from 2000 to date of tax relief on charitable donations; if contributions to entities such as private schools, golf clubs and other sporting organisations qualify for such relief; the circumstances in which they so qualify; and the cost of such relief in respect of such bodies. [10965/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The original scheme for tax relief on donations made to charities was governed by section 8, Finance Act 1995, and applied only to certain designated Third World charities. The current scheme for tax relief on donations to approved bodies, which includes donations made to charities, is governed by section 848A of the Taxes Consolidation Act 1997. The scheme was introduced in Finance Act 2001 and claims under the scheme arose from 2002 onwards.

A separate donation scheme is provided for under section 847A in relation to donations to approved sports bodies for the funding of certain approved projects. This scheme was introduced in Finance Act 2002 and claims under the scheme arose from 2003 onwards. Private schools qualify as approved bodies under the section 848A scheme, once the programme of education being provided is approved by the Minister for Education and Science. Golf clubs and other sporting organisations are likely to qualify in the context of the section 847A scheme once the project (for which the donations are sought) has been approved by the Minister for Arts, Sport and Tourism.

As provided for in the relevant legislation, different tax relief arrangements apply in relation to donors paying tax under PAYE and those paying tax under the self assessment system. In the case of PAYE donors, the charity, approved body or sporting body recovers the tax associated with the donation on a grossed-up basis from Revenue. Donors who pay tax on a self-assessment basis claim the relief in their own tax returns.

The following figures of the cost to the Exchequer for the years 2000-01 to 2004 inclusive are in respect of the original charities donation scheme, Finance Act 1995, and of the current scheme for donations to approved bodies, Finance Act 2001.

The basis for compiling the figures in respect of donations made by PAYE taxpayers under the 2001 scheme was changed from a tax year basis to a calendar year basis for 2002 and later years and an unavoidable result of this transition is that the bulk of a cost of €13.3 million which was initially attributed to the income tax year 2001 has been reclassified under calendar year 2002 and later years.

The cost to the Exchequer of tax relief on donations by self-employed taxpayers to approved sports bodies within the meaning of section 847A of the Taxes Consolidation Act 1997 is estimated to be of the order of €0.1million for income tax year 2002, the latest year for which an estimate is available. Figures for corresponding donations by PAYE taxpayers are not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records; however, on the basis of some limited indicative figures available, the cost to the Exchequer of these donations is unlikely to exceed €0.1 million for income tax year 2002 and may be less.

As figures of donations made by companies are not captured in corporate tax returns there is, therefore, no basis on which an estimate of the associated cost to the Exchequer can be compiled.