Jimmy Deenihan (Kerry North, Fine Gael)
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Question 562: To ask the Minister for Finance if his attention has been drawn to the impact the 21% VAT on non-resident artists performing for not for profit arts organisations is having; his plans to tackle same in the Finance Bill; and if he will make a statement on the matter. [2092/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I should explain that not-for-profit organisations are exempt from VAT under the EU VAT Directive with which Irish law must comply. The means that non-profit making organisations do not charge VAT on their services and cannot recover VAT on goods and services which they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT.

The VAT Act lists a range of activities that are exempt from VAT. Included in this list is the promotion of and admissions to live theatrical or musical performances. This very broad exemption is allowed under Article 132 of the EU VAT Directive. In effect, this means that the promoter realises the full value of admission fee as no VAT is applied to admission fees. In this regard, the current exemption is already very generous covering a broad range of actives accessible to the wider public.

In addition, one of the basic tenets of EU VAT law relates to the proper functioning of the internal market. This means that it is not possible to use VAT law to favour artists not resident in this state over artists that are resident in the state. In relation to providing a VAT exemption for performance fees charged by musical or theatrical performers to not-for-profit arts organisations, the position is that the VAT treatment of a particular good or service is determined by the nature of the good or service, and not by the status of the customer.

There is no provision in European VAT law that would allow for an exemption from VAT on supplies by non-resident artists when they perform for not-for-profit cultural organisations as such an exemption would have to apply to all such performers. It is estimated that this would cost in excess of €20 million. All performance fees are therefore liable to VAT at the standard rate of 21 per cent.

Jack Wall (Kildare South, Labour)
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Question 563: To ask the Minister for Finance the tax implications for a person (details supplied) in County Kildare who is in receipt of carers benefit; and if he will make a statement on the matter. [2109/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that the taxpayer is in receipt of the carers benefit payable by the Department of Social and Family Affairs. This is a taxable source of income but is not taken into account when determining her spouse's entitlement to the home carer tax credit. Based on the information provided, the carers benefit payable to the taxpayer in the current year is covered by the standard rate cut off point and PAYE tax credit in her own right and consequently no income tax is due.

The home carers tax credit has been granted to her spouse for the current year and a tax credit certificate incorporating this tax credit has been issued.

Jack Wall (Kildare South, Labour)
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Question 564: To ask the Minister for Finance if a person (details supplied) in County Kildare will be furnished with a P21 for 2006; and if he will make a statement on the matter. [2110/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have been advised by the Revenue Commissioners that a PAYE balancing statement (Form P21) for 2006 was issued to the taxpayer on 19 January 2007.