Jack Wall (Kildare South, Labour)
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Question 107: To ask the Minister for Finance the situation regarding the artists' tax exemption scheme; if his attention has been drawn to the booklet, Testimonials on the Artists Tax Exemption Scheme, released by the Arts Council; if an assessment of the scheme has been carried out; and if he will make a statement on the matter. [34884/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The artists' tax exemption was one of the exemptions reviewed by my Department in consultation with the Revenue Commissioners as part of this year's overall review of tax reliefs and exemptions. Prior to budget 2006, I met the Arts Council to discuss the exemption with it. At that meeting, the Arts Council presented me with a copy of the testimonials, so my attention has been drawn to them.

As the Deputy will be aware from my Budget Statement last week, I have decided to make no change to the tax treatment of income exempt under the artists' tax exemption scheme where that income is less than €250,000 per year. I am a strong supporter of the arts here and I believe abolishing or restricting the exemption to artists in the lower income ranges would make it financially more difficult for such artists to continue in their field and could have a long-term impact on the development of the arts here. The statistics compiled by the Revenue Commissioners on the exemption in recent years highlight the fact that the vast majority of artists have been claiming the exemption on income of €50,000 or less.

However, there is a strong case, on grounds of equity, for restricting the amount of earnings that can fall to be exempted under the exemption scheme. Accordingly, I have decided that the new restriction of reliefs, which I announced in the budget, to come into effect from 1 January 2007, will apply to the artists' tax exemption where the artist's "exempt" income exceeds €250,000 in any year from 1 January 2007.