Written answers

Tuesday, 19 January 2010

9:00 pm

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 238: To ask the Minister for Finance the amount refunded under section 848A of the Tax Consolidation Act 1997 in 2008; the details of the amounts received, brought down, benefits, charities, overseas aid groups and religious congregations. [48540/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 848A of the Taxes Consolidation Act 1997 provides for a scheme of tax relief for donations to eligible charities and other approved bodies. The precise arrangements for allowing tax relief on donations varies depending on whether the donor is a PAYE taxpayer, a person subject to self-assessment or a company.

For PAYE-only taxpayers, the relief is given on a "grossed-up" basis to the approved body rather than by way of a separate claim to tax relief by the donor. The claim is therefore made to the Revenue Commissioners by the approved body. In the case of a donation made by an individual who pays tax on a self-assessment basis, the 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 and there is no grossing up arrangement

I am informed by the Revenue Commissioners that, because of the different arrangements, as outlined above, for claiming the tax relief and the fact that the records maintained by them do not readily differentiate between the different types of charities and approved bodies availing of the relief, the detailed information sought by the Deputy cannot be easily compiled.

However, the following table sets out the estimated cost to the Exchequer of tax relief on donations to approved bodies and eligible charities,insofar as they are available, for the years 2007 and 2008. The figures shown for companies relate to accounting periods ending in 2007 and 2008. I am advised by Revenue that they are not yet in a position to provide data for 2008 in respect of self-employed donors, as all tax returns filed for that year have not yet been processed.

20072008
PAYE€25.3m€29.5m
Self-Employed€18.6mN/A
Companies€0.6m€1.2m

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