Jack Wall (Kildare South, Labour)
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Question 59: To ask the Minister for Finance if there is a need for voluntary organisations to register for tax purposes; the process that such groups should follow to register; and if he will make a statement on the matter. [24944/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised by the Revenue Commissioners that voluntary organisations must register for tax if they carry out taxable activities or encounter taxing events. An example would be a voluntary organisation which employs persons under the PAYE/PRSI system or carries on a trade. Such an organisation would have an obligation to register and account for PAYE/PRSI, and VAT, if their turnover exceeds, or is expected to exceed, the appropriate registration limit. In order to register for tax, a voluntary organisation must complete a tax registration form (available on Revenue's website) and forward it to their local District Tax Office.

Some voluntary organisations, such as charities and sports bodies, may be entitled to tax exemptions, subject to certain conditions. The charitable tax exemption is available to bodies which have been established for charitable purposes only, under Section 207 Taxes Consolidation Act 1997. In order to avail of the exemption, the relevant organisation must have a legal structure and a Governing Instrument and it must satisfy Revenue that it has been established for charitable purposes only and that it will apply its income for charitable purposes only.

Full details in relation to the application process for charities (including the application form itself) are contained in information booklet CHY1, Applying for Relief from Tax on the Income and Property of Charities, which is available on the Revenue website or by phoning Lo call 1890 666 333.

A separate tax exemption is provided for sports organisations under Section 235 Taxes Consolidation Act 1997. Under this provision, a tax-exempted sports body can be exempted from certain taxes, provided it applies its income to the sole purpose of promoting an athletic or amateur game or sport. Full details in relation to the application process for sports bodies (including the application form itself) are contained in Leaflet GS1, Relief from Income Tax and Corporation Tax for Certain Sporting Bodies". This is also available on the Revenue website.

Arthur Morgan (Louth, Sinn Fein)
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Question 62: To ask the Minister for Finance the plans he has to increase taxes in view of the contraction in tax revenue, income and other taxes which were cut at a time when the tax receipts were bloated by the taxes related to consumption and construction. [31309/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I have previously indicated, economic growth for this year is now likely to be significantly less than that forecast at Budget time.

At the end of August, taxes were nearly EUR2.8 billion behind target. My Department is closely monitoring overall tax performance in the run-up to the Budget. The weakness in taxes, particularly on VAT, CGT and Stamp Duty receipts, reflect a number of factors namely, the substantial adjustment in the housing market, the ongoing difficulties in the international financial markets and slower domestic economic activity such as weaker retail sales. Ireland is not unique in facing these difficulties and many of our euro area partners are experiencing similar forces acting upon their public finances.

As is normal, I will not comment on the contents of the Budget in advance of that date. Budget 2009 will, however, set out a comprehensive approach to ensuring that Ireland remains on course for sustainable economic and social development over the medium term.

Mary Upton (Dublin South Central, Labour)
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Question 66: To ask the Minister for Finance his views on reducing the 21% VAT rate levied on foreign performers; if his attention has been drawn to the fact that this acts as a disincentive to foreign artists performing here; the plans he has to tackle this issue; and if he will make a statement on the matter. [24568/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The VAT treatment of goods and services is governed by EU law with which Irish law must comply. 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 addition, Article 283 of the EU VAT Directive precludes the granting of a threshold to non-resident taxable persons and consequently it is not possible to apply the Irish VAT exemption threshold to non-resident artists.

There are no plans to change the current VAT treatment of foreign artists who supply services in the State. Introducing an exemption for non-resident performers would immediately create a distortion of competition between resident and non-resident performers. It is likely that the introduction of such an arrangement would not only be challenged by resident performers but also possibly by the European Commission.

It has to be recognised that Ireland provides an exemption from VAT for the promotion and admission to live musical and theatrical 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 in covering a broad range of activities accessible to the wider public.