Dinny McGinley (Donegal South West, Fine Gael)
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Question 145: To ask the Minister for Arts, Sport and Tourism if he has had representations from the Federation of Irish Sport on the desirability of tax relief for private investment in sport; if he has had discussions with the Department of Finance on this matter; and if he will make a statement on the matter. [33925/08]

Martin Cullen (Waterford, Fianna Fail)
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I have received the representations referred to by the Deputy. The tax relief on donations to certain sports bodies scheme, established under section 847a of the Taxes Consolidation Act came into effect from 1st May 2002. It allows for tax relief on donations made to approved sports bodies for the funding of sports capital projects.

This scheme applies to donations of over €250 made toward expenses incurred by an approved sports body in relation to a capital project after the 1st of May 2002. The donation must be freely given with no benefit derived in return by the donor.

If the donor is a PAYE taxpayer the sports body claims the tax relief at the donor's marginal rate, e.g. an individual on the higher rate of tax (41%) makes a donation of €590 to a sports body. The sports body will then be able to claim €410 from Revenue at the end of the tax year i.e. the amount of tax already paid to Revenue by the donor on the net amount of €590.

Individual taxpayers on the self-assessment system will be able to claim relief on their annual tax returns as a deduction from their total income. A corporate entity may claim relief on a donation by treating it as a deductible trading expense.

Projects that are valid under the scheme include the following:

the purchase, construction or refurbishment of a building or structure, or part of a building or structure to be used for sporting or recreation activities provided by the approved sports body,

the purchase of land to be used by the approved sports body in the provision of sporting or recreation facilities,

the purchase of permanently based equipment (excluding personal equipment) for use by the approved sports body in the provision of sporting or recreation facilities,

the improvement of the playing pitches, surfaces or facilities of the approved sports body, and

the repayment of, or the payment of interest on, money borrowed by the approved sports body on or after 1 May 2002 for any of the above purposes.

I believe that the scheme is working well with 217 projects worth over €156 million approved to date.

Any changes to this scheme would be a matter for the Minister for Finance to consider in the context of overall taxation policy.