Written answers

Tuesday, 24 April 2007

11:00 pm

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 251: To ask the Minister for Finance if there are tax reliefs available for high performance athletes for the costs incurred in their training, equipment and attending competition; and if he will make a statement on the matter. [14676/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that there are no specific tax reliefs available for high performance athletes. However, there are a number of general provisions in the tax code which may apply to some high performance athletes where those athletes are engaged in athletic performance on a professional for profit basis. In such cases, a professional athlete would be entitled, for tax purposes, to set against his or her earnings from athletic performance all costs incurred in training and attending competitions where those costs are incurred wholly and exclusively for the purposes of his or her athletic profession. Capital allowances may also be available for expenditure incurred on the purchase of equipment for use by such a professional athlete for the purposes of his or her training or performing as an athlete. Capital allowances would allow the cost of any such equipment to be written off over 8 years at the rate of 12.5% per annum.

In addition, section 480A of the Taxes Consolidation Act 1997 makes provision for relief from income tax in respect of certain earnings of sportspersons listed in Schedule 23A of that Act. The sportspersons concerned are: athlete, badminton player, boxer, cyclist, footballer, golfer, jockey, motor racing driver, rugby player, squash player, swimmer and tennis player. The earnings to which the relief applies are earnings deriving directly from actual participation in the sport concerned such as prize money and performance fees, but not other earnings such as sponsorship fees, advertisement income or income from endorsements. The relief takes the form of a deduction from earnings equal to 40% of those earnings for up to any ten years of assessment back to and including the tax year 1990/91 for which the sportsperson was resident in the State. The relief is given by way of repayment of tax and is claimed in the year in which the sportsperson ceases permanently to be engaged in that sport provided they are resident in the State in that year. There are provisions whereby relief granted may be withdrawn if the person subsequently recommences participation in that sport, though this does not prevent a subsequent claim for the relief if and when the sportsperson finally retires at a later time.

I would also point out that over €274 million has been allocated by the Government to Sports and Recreation Services for 2007, a 41% increase on the figure for 2006. This includes an allocation of over €2 million to Ireland's elite athletes and players in grants under the International Carding Scheme administered by the Irish Sports Council, which is the statutory body responsible for the development of sport. This scheme provides direct support in terms of grant-aid and indirect support in terms of sport science and medical backup to athletes.

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