Joanna Tuffy (Dublin Mid West, Labour)
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Question 140: To ask the Minister for Finance if he has any plans to reform the criteria relating to the artists' tax exemption; and if he will make a statement on the matter. [5334/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I assume the Deputy is referring to the qualification criteria for the awarding of the artists exemption in respect of particular works that are considered to be original and creative.

Section 195 of the Taxes Consolidation Act 1997 provides an exemption from tax for the profits or gains arising to a person from the publication, production or sale of an original and creative work which has artistic or cultural merit in any of the five categories set out in the legislation, namely, a book or other writing; a play; a musical composition; a painting or other like picture; or a sculpture.

Under the legislation, the Revenue Commissioners are required to make a determination as to whether or not a work has artistic or cultural merit before the exemption can be awarded. The commissioners are specifically required by the legislation to make their determination having regard to guidelines drawn up by the Arts Council and the Minister for Arts, Sports and Tourism with the consent of the Minister for Finance. The guidelines set out definitions of the terms "original and creative", "artistic merit" and "cultural merit". They also set out specific criteria to be taken into account in making determinations relating to works of non-fiction and provide for exclusions from what is to be regarded as original and creative in respect of certain works (e.g. textbooks, works of journalism and functional or utilitarian works). The current guidelines are available on the Revenue website at www.revenue.ie.

I understand that these guidelines are currently being reviewed by the bodies mentioned in conjunction with the Revenue Commissioners and that considerable progress has been made.