Paul Kehoe (Wexford, Fine Gael)
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Question 299: To ask the Minister for Finance his views on allowing tax relief for individuals or businesses who donate money towards the care of children with special needs; and if he will make a statement on the matter. [9815/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy may be aware, under Section 848A of the Taxes Consolidation Act 1997, tax relief is available on donations to eligible charities and other approved bodies, including bodies which come under the category "Advancement of Education". Any school teaching children with special needs, for example, would be entitled to apply to the Revenue Commissioners for charitable tax exemption.

The minimum qualifying donation for relief purposes to an eligible charity or approved body is €250 per annum and there is no upper limit on the amount which can be donated. Donations for any one year can be on a cumulative basis. Thus, a weekly donation of €5 per week can qualify for the relief. The relief on the donation is at an individual's marginal rate of tax. The arrangements for allowing tax relief on donations depends on whether the donor is a PAYE taxpayer or an individual on self-assessment or a company. For a PAYE taxpayer, the relief is given at the donor's marginal rate of income tax and is given on a grossed-up basis to the charity. This means the tax refund goes to the charity. In the case of a donation made by an individual who is self-assessed, the individual claims the relief and there is no grossing-up arrangement. Similarly, in the case of companies, they can claim deductions for donations as if they were a trading expense. In Budget 2006 I extended the scheme to cover the donation of publicly quoted securities.

Given the existing donations schemes, I have no plans to introduce any special tax reliefs for donations towards the care of children with special needs. I would point out, however, that in recent years the Government has increased significantly the supports available through the direct expenditure system for children with disabilities.