Catherine Murphy (Kildare North, Independent)
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Question 256: To ask the Minister for Finance his views on allowing tax refunds on all donations to schools rather than confining such refunds to donations above €250; and if he will make a statement on the matter. [13561/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Finance Act 2001 introduced a new scheme of tax relief on donations made by either individuals or corporate bodies to eligible charities and other approved bodies, including first and second level schools and third level institutions, including universities. The minimum qualifying donation for relief purposes to an eligible charity or approved body is €250 per annum. Amending the scheme to allow tax relief on all donations rather than on donations of €250 and over, as the Deputy has proposed, would significantly increase the current cost of the scheme to the Exchequer. The relief is already very generous. There is no upper limit on the amount which can be donated generally and relief is granted at the donor's marginal rate of income tax. Donations can be cumulative, so that a donation of just €5 per week over the course of a year would qualify, for example.

As the Deputy will be aware, the donations scheme was one of the tax reliefs examined as part of last year's overall review of tax reliefs and exemptions. The review concluded that the €250 minimum threshold is serving its purpose and should be retained at its current level, subject to ongoing review. I agree with this conclusion. The Deputy may wish to note that the full textof the review can be found on the Departmentof Finance's website at www.finance.gov.ie/ documents/publications/other/revtaxreliefsvol3.pdf.