Róisín Shortall (Dublin North West, Labour)
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Question 94: To ask the Minister for Finance the way in which income from renting a car-space is treated for income tax purposes; the reliefs, credits or other such tax allowances available on such income; and the specific statutory provision covering this area. [25709/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy's question relates to the letting of a single car-space by an individual who does not require it for personal use.

On that basis, the position is that income from the renting of a car-space which is situated in the State is chargeable to tax under Case V of Schedule D. A surplus or deficiency is computed for each year by reducing the gross amount of rent receivable for the car-space by allowable deductions. Where the owner of the car-space has other lettings in the State, a surplus or deficiency is computed separately for each source. The Case V income in any year is the surplus from the car-space letting or, if there are other lettings, the aggregate of the surpluses reduced by the aggregate of the deficiencies. In either situation, unused Case V losses from earlier years may be carried forward and set against Case V income in a later year.

Section 97(2) of the Taxes Consolidation Act 1997 specifies the allowable deductions for Case V purposes. The main deductions are for: Any rent payable by the landlord in the case of a sub-lease; The cost to the landlord of any goods provided or services rendered to a tenant; The cost of maintenance, repairs, insurance and management of the property; Interest on borrowed money used to purchase, improve or repair the property; and payment of local authority rates in the case of rateable properties used for commercial purposes.

The principal provisions governing the taxation of rental income chargeable under Case V of Schedule D are contained in Part 4, Chapter 8 of the Taxes Consolidation Act 1997.

Brian O'Shea (Waterford, Labour)
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Question 95: To ask the Minister for Finance if he will retain the current rate of tax relief for charities; and if he will make a statement on the matter. [25715/10]

Brian O'Shea (Waterford, Labour)
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Question 96: To ask the Minister for Finance if he will reduce the threshold for tax relief to around €100 a year for charities; and if he will make a statement on the matter. [25716/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 95 and 96 together.

It is assumed that the deputy is referring to certain recommendations that were made in the report of the Commission on Taxation. The first of these mentioned by the Deputy proposed that the income tax relief available for donations made to charitable bodies be available only at the standard rate of taxation. Currently tax relief is available for such donations at the taxpayer's marginal rate. The second recommendation mentioned proposed that the threshold for eligibility for the relief be reduced to €100 from its current level of €250.

The Commission on Taxation made six recommendations in total with regard to the tax exemptions and reliefs that are currently available to charities. It is appropriate to examine these recommendations as a composite group in order to ascertain the effect of their implementation on the charitable sector and indeed on the Exchequer.

The views of the relevant Ministers have been sought in relation to various recommendations of the Commission on Taxation. In this regard, the views of the Minister for Community, Equality and Gaeltacht Affairs have been sought regarding the recommendations relating to the charitable sector.

Consideration of the responses from Ministers and the recommendations of the Commission on Taxation will be undertaken as part of the annual Budget and Finance Bill process.

Brian O'Shea (Waterford, Labour)
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Question 97: To ask the Minister for Finance if he will to introduce compensation to charities for VAT incurred on independent fundraising for charities; and if he will make a statement on the matter. [25717/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT.

With regard to introducing compensation to charities in respect of the VAT incurred by them on fundraising expenses, this would undoubtedly lead to other exempt bodies such as schools, hospitals and sporting organisations, many of which are already registered as charities, seeking to benefit from such a system of refunds. These exempt bodies are already receiving considerable Exchequer funding.

The tax code already treats charities in a favourable manner. The tax code currently provides exemption for charities from Income Tax, Corporation Tax, Capital Gains Tax, Deposit Interest Retention Tax, Capital Acquisitions Tax, Stamp Duty, Probate Tax, Dividend Withholding Tax and the uniform scheme of tax relief for donations.

Finally, even if funds were available to offset the VAT paid by charities in Ireland, I am not sure that the most appropriate use of the funds would be to relieve them of the VAT paid on inputs as opposed to grant-aiding their activities using other criteria.