Trevor Sargent (Dublin North, Green Party)
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Question 100: To ask the Minister for Finance if a tax exempt approved body must, in order to comply with the provisions of section 235 of Taxes Consolidation Act 1997, include in its rules and constitution certain clauses, income and property and winding-up clauses, which ensure the members of the tax exempt approved sports body do not benefit directly or indirectly or otherwise from the income or assets of the approved body, including the interest accruing on any tax free capital sum arising from the sale of assets; and if he will make a statement on the matter. [17348/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 235 of the Taxes Consolidation Act, 1997 provides an income tax exemption to sporting bodies, which have been approved by Revenue on the basis that the body has been established for, and exists for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the amount of the income of the approved body which has been, or will be, applied to the sole purpose mentioned.

Sections 610 and Schedule 15, Paragraph 37 of the Taxes Consolidation Act, 1997 provides a capital gains tax exemption in respect of chargeable gains accruing to sporting bodies to the extent that the income of the sporting body is exempt from income tax or corporation tax as the case may be. Where a sporting body realises a capital sum from the disposal of an asset the exemption applies only to the extent that the proceeds are applied for the sole purpose of promoting athletic or amateur games or sports.

The administration of tax exemptions for sporting bodies is a matter for the Revenue Commissioners. Revenue has emphasised that the detailed application of funds has to be considered specifically, and in context, in each individual case, to determine whether any implications arise for the tax exemption, or the body's approval by Revenue. Revenue has also confirmed that while there is no specific requirement in section 235 regarding the type of clauses to be included in the Rules and Constitution of tax exempt sporting bodies, those bodies that formally apply for an exemption are required to include income, property and winding-up clauses which ensure that no portion of the bodies' income or property is transferred directly or indirectly by way of dividend, bonus or otherwise howsoever by way of profit to the members. Revenue has also confirmed that bodies granted sporting tax exemption are subject to periodic risk-focused review towards ensuring that the terms of the exemption continue to be fulfilled. All relevant matters, including adherence to any income, property and winding-up clauses are considered in the context of such reviews.

Trevor Sargent (Dublin North, Green Party)
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Question 101: To ask the Minister for Finance if a club (details supplied) in County Dublin is in breach of section 235 of the Taxes Consolidation Act 1997 by using €2.2 million of interest from a tax exempt capital sum of €20 million to offset against the club operating loses of €2.9 million thereby subsidising member's annual subscriptions to a lesser amount than would otherwise be payable were such interest not available to the body and in so doing conferring a direct or indirect financial benefit on the members of that body in contravention of the terms and conditions under which the tax exemption was granted; and if he will make a statement on the matter. [17349/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 235 of the Taxes Consolidation Act, 1997 provides an income tax exemption to sporting bodies, which have been approved by Revenue on the basis that the body has been established and exists, for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the amount of income applied to the sole purpose of promoting athletic or amateur games or sports.

Sections 610 and Schedule 15, Paragraph 37 of the Taxes Consolidation Act, 1997 provides a capital gains tax exemption in respect of chargeable gains accruing to sporting bodies to the extent that the income of the sporting body is exempt from income tax or corporation tax. Where a capital sum is realised from the disposal of an asset the exemption applies to the extent that the proceeds are applied for the sole purpose of promoting athletic or amateur games or sports. Revenue cannot comment on an individual case but confirms that such cases are subject to periodic review to ensure that all the terms of exemption are fulfilled and will investigate a case if information comes to light that the exemption conditions are not met.