Tommy Broughan (Dublin North East, Labour)
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Question 184: To ask the Minister for Finance if he will allow schools to claim tax relief on donations made to the school of either 20% or 42% depending on the tax level paid by the donor; and if he will make a statement on the matter. [46283/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 848A of the Taxes Consolidation Act 1997 governs the scheme for tax relief on donations to eligible charities and other approved bodies. The administration of this scheme is the responsibility of the Revenue Commissioners.

All primary and post primary schools providing education based on a programme prescribed or approved by the Minister for Education and Science automatically qualify as approved bodies for the purposes of section 848A.

Tax relief is granted at the standard 20% rate or at the higher 41% rate, depending on the rate of tax payable by the donor for the relevant year of assessment. The precise arrangements for allowing tax relief on donations varies depending on whether the donor is a PAYE taxpayer, a person 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). 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.

The detailed terms and conditions of the scheme are set out in leaflet CHY 2 which can be accessed on the Revenue website www.revenue.ie.