Tuesday, 18 May 2010
Department of Finance
In order to qualify for the Home Carer's Tax Credit, the claimant must normally reside with the dependent relative for the tax year or reside in a neighbouring residence, i.e. within 2 kilometres of the claimant. If these circumstances apply in this case, the person in question may make a claim for the Home Carer's Tax Credit. He may do this online at www.revenue.ie or on the application form included with Leaflet IT66 which is also available on the Revenue website or from his local Revenue office.
Exemptions from a broad range of taxes are already available to bodies that are established for charitable purposes only and which apply all of their income for such purposes. Sections 207 and 208 of the Taxes Consolidation Act (TCA) 1997 provide an exemption from Income Tax and this exemption is extended to cover Corporation Tax by sections 76 and 78 of the same Act. Exemptions are also available in respect of Capital Gains Tax - section 609 TCA, Deposit Interest Retention Tax (DIRT) - section 266 TCA, Capital Acquisitions Tax – sections 17, 22 and 76 of the Capital Acquisitions Taxes Consolidation Act 2003, Stamp Duty - section 82, Stamp Duties Consolidation Act, 1999 and Dividend Withholding Tax - Chapter 8A, Part 6, TCA.
Charities engaged in non-commercial activity are exempt from VAT insofar as that they are not required to charge VAT on their services and therefore generally cannot recover VAT incurred on goods and services purchased. However, there are various specific relieving provisions in respect of VAT on vehicles, fuel, aids, appliances, crafts and equipment used by organisations or individuals in connection with disabled people, humanitarian goods for export, rescue groups and donated medical and research equipment.
Section 848A of the Taxes Consolidation Act 1997 also provides for a scheme of tax relief for donations of money or designated securities to eligible charities and other approved bodies. The precise arrangements for allowing tax relief on such donations varies, depending on whether the donor is a PAYE taxpayer, a person who is subject to self-assessment or a company. Relief from Capital Gains Tax is also available under Section 611 of the Taxes Consolidation Act 1997 in relation to the donation of assets by taxpayers to charities. A comprehensive list of the various tax exemptions available to charities and details of how these can be applied for is available on the Revenue website at www.revenue.ie.