Ruairi Quinn (Dublin South East, Labour)
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Question 22: To ask the Minister for Tourism, Culture and Sport the discussions she has had with the Minister for Finance regarding the reformation of the artists' tax exemption scheme; and if she will make a statement on the matter. [27242/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Under the Artists Tax Exemption Scheme, the income accruing to a writer, composer, visual artist or sculptor from the publication, production or sale of his/her work is exempt from income tax. The Exemption applies to income tax only and does not extend to VAT. Subsequent to the publication of the Report of the Commission on Taxation last year, my Department engaged extensively with the Department of Finance on this issue.

The Finance Act, 2010, introduced a number of changes which restrict the Artists' Exemption (as well as the use of other specified tax reliefs). A new entry level threshold of €125, 000 at which the High Income Individuals Restriction applies, was introduced from the 2010 tax year. In addition, the effective rate of income tax for high-income individuals who are fully subject to the restriction, increases from 20% to 30%. This occurs when adjusted income reached €400,000. These changes reduce further the number of high earners who benefit from the Artists Exemption. As the Deputy is aware, the vast majority of those benefiting from the Artists Exemption have exempt earnings equivalent to or lower than the annual income tax exemption limit of €20,000.