Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 222: To ask the Minister for Finance his views on circumstances in which a non-executive director of a charity who receives no payment apart from out of pocket expenses from the charity is nominated by the charity and is subsequently appointed to sit on the board, advisory body or committee of another organisation which is not a charity for which they receive and retain a fee; the implications for the designation of the charity for tax purposes by the Revenue Commissioners; the legal basis for such a decision; and if he will make a statement on the matter. [39477/08]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 223: To ask the Minister for Finance his views on whether it would be appropriate for the Revenue Commissioners to take into account fees and payments apart from out of pocket expenses paid to non-executive directors of charities from other bodies to which they were nominated by their charity when determining or reviewing the designation of the charity for tax purposes despite the fact that the bodies making the payments are separate legal entities, are not charities and therefore there is no prohibition on the payment of fees and the work and contribution of the director nominated by the charity is undertaken in their own time; and if he will make a statement on the matter. [39478/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 222 and 223 together.

A tax exemption for charities is available under section 207 of the Taxes Consolidation Act 1997. To avail of this exemption, a body must be established for charitable purposes only and must also apply all of its income for charitable purposes only. With a view to ensuring that this is the case, Revenue generally insists that no director, trustee or officer receives any remuneration or other benefit from the charity. In cases where a director of a charity is nominated by the charity and is subsequently appointed to sit, in their own time, on the board, advisory body or committee of another organisation which is not a charity and receives and retains a fee in respect of such appointment, the payment of such a fee would not normally have implications for the designation of the charity as a tax exempt body. However, Revenue has pointed out that each case is decided on its own merits and, when reaching its decision, Revenue would have to be satisfied that the appointment was a bone fide appointment to an independent board, body or committee.