Joan Burton (Dublin West, Labour)
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Question 63: To ask the Minister for Finance if, in respect of relief granted to sports bodies under section 847A, Taxes Consolidation Act 1997, he will provide information (details supplied) for the years 2003 to 2006 and estimates of the cost for 2007 and 2008. [26410/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy is aware that the operation of the scheme for tax relief on donations to certain sports bodies is governed by the provisions of section 847A of the Taxes Consolidation Act 1997. These bodies must be an "approved body of persons" established for and existing for the sole purpose of promoting athletic or amateur games or sports. They must also have been granted tax exemption under section 235 of the Taxes Consolidation Act 1997. I am advised by the Revenue Commissioners that a list of sports bodies who have been granted tax exemption under this section is available on the Revenue website at www.revenue.ie.

The precise arrangements for allowing tax relief on donations depends on whether the donor is a PAYE taxpayer, a person who is subject to self-assessment or a company. For a PAYE donor, the relief is given on a "grossed up" basis to the eligible sports body, rather than by way of a separate claim to tax relief by the donor. In this instance the claim for refund of the tax deducted by the donor is made to Revenue by the approved sports body. In the case of a self-assessed donor, the donation is paid gross and that individual claims the tax relief in their tax return. In the case of a company, the donation is paid gross and the company claims a deduction for the donation as if it were a trading expense.

The figures of estimated cost to the Exchequer of tax relief on donations by self-employed taxpayers to approved sports bodies within the meaning of Section 847A of the Taxes Consolidation Act, 1997 for income tax years 2003, 2004 and 2005, the latest year for which the necessary detailed information is available, are set out in the following table:

I am advised by Revenue that they are not in a position to provide Income Tax data for 2006 to 2008 in respect of self-employed donors, as the tax returns for those years are either being processed currently or not yet due.

Tax relief on donations by companies to approved sports bodies was claimed by 31 companies with accounting periods ending in 2006 at an estimated cost to the Exchequer of approximately €60,000. As figures of donations made by companies were not captured in corporate tax returns for accounting periods ending in years prior to 2006 there is, therefore, no basis on which an estimate of the associated costs to the Exchequer can be compiled for these years. Figures in relation to corresponding donations by PAYE taxpayers are not available because administration of the scheme is localised.

As regards the names of all bodies approved and details of the project for which relief was granted: the cost of the relief granted: an overall analysis of the cost per sport: the highest cost of the relief granted to one project in each year: the number of sports bodies receiving relief in each year, I am advised by the Revenue Commissioners that the records maintained by them do not easily provide a basis for compiling the detailed information sought by the Deputy and cannot be obtained without conducting a protracted examination of their records.

Joan Burton (Dublin West, Labour)
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Question 65: To ask the Minister for Finance if, in respect of relief granted to approved bodies under section 848A of the Taxes Consolidated Act, 1997, he will provide information (details supplied) for the years 2003 to 2006 and estimates of the cost for 2007 and 2008. [26412/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy is aware that the operation of the scheme for tax relief on donations to eligible charities and other approved bodies is governed by the provisions of section 848A of the Taxes Consolidation Act 1997. Bodies, including schools, colleges, universities, bodies approved for education in the arts as well as a number of other specified organizations are defined as approved bodies for the purposes of the donations scheme by virtue of the specific groups of entities listed in Schedule 26A of the 1997 Act. In addition charities that hold charitable tax exemption for a period of at least two years may apply for approval under the donations scheme. I am advised by the Revenue Commissioners that a list of charities approved for the purposes of the donations scheme is available on the Revenue website at www.revenue.ie. The full details of the terms and conditions of the scheme are available in Leaflet CHY 2 which can be also accessed on the Revenue website.

The precise arrangements for allowing tax relief on donations depends on whether the donor is a PAYE taxpayer, a person who is subject to self-assessment or a company. For a PAYE donor, the relief is given on a "grossed up" basis to the eligible charity or approved body, as the case may be, rather than by way of a separate claim to tax relief by the donor. In this instance the claim for refund is made to Revenue by the approved body or eligible charity. In the case of a self-assessed donor, that individual claims the relief and there is no grossing up arrangement. In the case of a company, it will claim a deduction for the donation as if it were a trading expense.

I am informed by Revenue that the records maintained by them do not easily provide a basis for compiling the detailed information sought by the Deputy. In particular their records do not readily differentiate between tax refund/relief allowed in respect of donations to national schools, fee paying or non-fee paying second level schools, third level institutions, Universities or third world charities. In addition the arrangement for granting the relief is dependent on the donors tax status i.e. PAYE only donor where the charity or approved body claims the relief, self assessed donor where the individual claims the relief and a company donor where the donation is claimed as if it were a trading expense.

The following table sets out figures of the estimated cost to the Exchequer of tax relief on donations to approved bodies and eligible charities within the meaning of Section 848A of the Taxes Consolidation Act, 1997 in so far as they are available for the years 2003 to 2007.

I am advised by Revenue that they are not in a position to provide data for 2006 to 2008 in respect of self-employed donors, as the tax returns for those years are either being processed currently or not yet due. In respect of PAYE donors for 2008 the claims by the approved bodies are not yet due.

There were no recorded claims for tax relief on donations to approved bodies by companies with accounting periods ending in 2006. As data on donations made by companies were not captured in corporate tax returns for accounting periods ending in years prior to 2006 there is, therefore, no basis on which an estimate of the associated costs to the Exchequer can be compiled for those years.

Joan Burton (Dublin West, Labour)
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Question 66: To ask the Minister for Finance the number of claims under sections 847A and 848A of the Taxes Consolidated Act audited in the years 2003 to 2007 inclusive with a summary of the findings. [26413/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 847A of the Taxes Consolidation Act 1997 governs the scheme for tax relief on donations to certain sports bodies and section 848A governs the operation of the scheme for tax relief on donations to eligible charities and other approved bodies.

I am advised by Revenue that the precise arrangements for allowing tax relief on donations under both sections depends on whether the donor is a PAYE taxpayer, an individual who is subject to self-assessment or a company. In the case of donors who are PAYE taxpayers, the relief is given on a "grossed up" basis to the eligible body (rather than by way of a separate claim to tax relief by the donor). In this instance the claim for refund is made to Revenue by the eligible body. In the case of a self-assessed donor, that individual claims the relief in his/her income tax return and there is no grossing up arrangement. In the case of a company, it will claim a deduction for the donation as if it were a trading expense.

In processing claims by eligible bodies, Revenue carries out routine checks commensurate with the risk involved. These checks include a sampling of the claims and declarations made by the donors to verify the accuracy of the information contained therein.

The veracity of claims by both donors and eligible bodies may also be checked as part of the audit process undertaken by Revenue. However, as many Revenue audits cover more than one tax and more than one issue it is not possible to provide statistics in relation to the number of cases where Revenue auditors specifically looked at Section 847A/848A claims in particular cases. Where a case is selected for audit the auditor will usually take the opportunity to look at many aspects of compliance, including Sections 847A and 848A claims if they are applicable to the case, but no separate statistics are kept as regards the nature of the aspects examined.

Notwithstanding the absence of statistics in relation to the audit of claims under sections 847A and 848A, I am advised by Revenue that they have no indications of any significant problems with the operation of these tax reliefs.